Propeller Health, a US-based digital respiratory therapeutics developer backed by multiple corporate investors, agreed to a $225m acquisition by connected medical devices provider ResMed yesterday.
The deal is expected to close by the end of March 2019 and is subject to customary closing conditions.
Founded in 2010, Propeller Health has created a system that consists of small sensors attached to inhalers that track usage and offer personalised feedback to patients through a mobile app.
The platform is aimed at people living with chronic respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD). It will complement ResMed’s offering for those suffering from more severe forms of COPD.
Propeller will continue to operate as an independent unit within ResMed’s Respiratory Care portfolio. Its management will remain in place and its business processes and offices will be maintained for the time being.
The company has raised at least $60m in equity funding, most recently receiving an undisclosed sum in an extension to its series D round in June this year that included McKesson Ventures, the corporate venturing arm of health product supplier McKesson.
Propeller had secured $20m in a first close earlier the same month led by drug delivery technology provider Aptar Pharma and backed by 3M Ventures, Hikma Ventures and SR One, respective subsidiaries of manufactured goods producer 3M and pharmaceutical firms Hikma and GlaxoSmithKline.
The first close featured Safeguard Scientifics and Social Capital, both of which backed a $21.5m series C round for the company in 2016 that also included 3M Ventures, SR One and Hikma Ventures.
Well Ventures, the corporate venturing vehicle for pharmacy chain Walgreens, had supplied an undisclosed amount of funding for Propellor in 2014. Other earlier backers include Kapor Capital and XlerateHealth.
David Van Sickle, co-founder and chief executive of Propeller, said: “ResMed shares our belief that connected health solutions create vastly better experiences and outcomes for people with chronic respiratory disease.
“Joining forces enables us to accelerate the adoption of Propeller’s solutions at a global scale, and serve as a powerful platform for a broad set of pharmaceutical and healthcare partners.”
– Image courtesy of Propeller Health.
