ResMed buys Korean home healthcare supplier HB Healthcare

ResMedResMed (NYSE:RMD) said today that it bought Korean home healthcare equipment supplier HB Healthcare for an undisclosed amount.

San Diego-based ResMed said the acquisition is aimed at extending its decade-old footprint in South Korea to “millions more patients through HBH and its wider network of trusted distributor partners.”

“ResMed has reaffirmed its leading role in Korea’s CPAP and respiratory care market, and commitment to improving millions of Koreans’ breathing and quality of life,” Resmed Korea sales & marketing director Kim Ho Kyun said in prepared remarks. “With HBH and our valued distribution partners in Korea, ResMed can maximize the number of people who can enjoy the benefits of life-changing cloud-connected sleep and respiratory therapy.”

“We’re excited to join the ResMed family and, together, help provide life-changing, cloud-connectable devices to millions of Koreans living with sleep apnea, COPD and other chronic diseases,” added HB Healthcare patient management director Hong Seung Chul.

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At-home digital health: Here’s what you need to know

ResMed AirMini app at-home digital health

ResMed’s AirMini CPAP device includes an app for smart devices that provides insights including a 30-day therapy history and daily therapy score. [Image courtesy of ResMed]

Demand is increasing for at-home digital health systems, where sensors follow people’s health data and automatically turn them into real-time insights for themselves and their health providers.

From ResMed and its connected CPAP technology to Clarify Medical getting user feedback for its light therapy system for skin conditions, medical device companies have started to score successes in at-home digital health, according to Scott Thielman, CTO of Product Creation Studio (Seattle).

“We really need to focus on cultivating user experience — a great user experience that will be sticky, that will overcome the downsides of having to live with whatever this technology is in their lives. There’s design work there to be done that we really need to lean in to and focus on to keep these innovations successful,” Thielman said during the latest podcast at our sister site Medical Design & Outsourcing.

Go to MDO and listen to Thielman provide some solutions to common challenges medical device creators face in the at-home digital health world.

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Propeller Health study suggests 84% of asthma inhaler use performed incorrectly

ResMed, Propeller Health

ResMed (NYSE:RMD) subsidiary Propeller Health today released results from a new study exploring real-world use of rescue or controller inhalers that indicated that the majority of users did not use their inhalers properly.

Results from the research were published in The Journal of Allergy and Clinical Immunology: In Practice, the Madison, Wisc.-based company said.

Read the whole story on our sister site, Drug Delivery Business News

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ResMed, Fisher & Paykel agree to settle all outstanding patent suits

ResMed, Fisher & Paykel

ResMed (NYSE:RMD) and Fisher & Paykel Healthcare (NZE:FPH) said today in a joint announcement that they have reached an agreement to settle all outstanding patent infringement disputes across all global venues.

While the terms of the deal remain confidential, both San Diego-based ResMed and Auckland, New Zealand-based Fisher & Paykel said it involved no payments from either party.

The companies said that, moving forward, all infringement proceedings against named products will be dismissed with each party bearing its own attorney fees and costs. The settlement is effective immediately, and both companies have begun to request the withdrawal of pending cases.

“I am pleased we were able to resolve these disputes. This agreement supports the best interests of ResMed, and all of our stakeholders, including patients, providers, physicians, and shareholders. ResMed will continue to lead with innovative products, services and solutions for sleep apnea, COPD, and out-of-hospital healthcare software. We will defend our intellectual property wherever necessary to ensure that our mask, device and software customers receive the innovative solutions they deserve,” ResMed CEO Mick Farrell said in a press release.

“We are pleased to bring these disputes to a close and we appreciate the support of our customers and shareholders throughout the process. The intellectual property we have generated through our investment in R&D over the past 50 years has enabled us to positively impact the lives of many millions of patients. We have an ongoing commitment to improve patient care and outcomes through inspired and world-leading healthcare solutions and this resolution supports that commitment,” Fisher & Paykel Healthcare CEO Lewis Gradon said in a prepared statement.

As a result, infringement proceedings against ResMed’s AirSense flow generators, AirFit P10, Swift LT and Swift FX masks and ClimateLine heated tubes or against Fisher & Paykel’s Simplus, Eson or Eson 2 products will be dismissed, the companies said.

Last month, ResMed said that it completed its $225 million acquisition of Propeller Health and its digital medicine platform.

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ResMed shares plunge on Q2 sales miss

ResMed

Shares in ResMed (NYSE:RMD) fell nearly 20% after the respiratory-focused medical device maker missed sales expectations on Wall Street with its second quarter earnings results.

The San Diego-based company posted profits of $124.6 million, or 86¢ per share, on sales of $651.1 million for the three months ended December 31, for massive bottom-line growth of approximately 1208% while sales grew by a smaller 8.3% compared with the same period during the previous year.

Adjusted to exclude one-time items, earnings per share were $1, ahead of the 95¢ consensus on Wall Street where analysts expected to see sales of $672.9 million, which the company missed.

“We had a solid quarter with top-line growth and gross margin expansion, as well as continued fiscal discipline to drive leverage and improved operating profit. Our new AirFit F30 and AirFit N30i masks have been launched in many markets, and mask sales are growing well globally. During the quarter we further expanded our software and device ecosystems, through the acquisitions of MatrixCare and Propeller Health, to provide digital health solutions to millions more people worldwide. We are empowering people to live healthier and happier lives where they live, and we are doing this by providing innovative software, services, and solutions to improve outcomes, create efficiencies, and reduce overall healthcare system costs,” CEO Mick Farrell said in a press release.

Shares in ResMed fell 19.4% after the company released its earnings, closing last Friday at $94.56.

Earlier this month, ResMed said that it completed its $225 million acquisition of Propeller Health and its digital medicine platform.

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ResMed closes $225m Propeller Health purchase

ResMed, Propeller HealthResMed (NYSE:RMD) said yesterday that it completed its $225 million acquisition of Propeller Health and its digital medicine platform.

Lead by CEO David Van Sickle, Propeller will continue to operate as a standalone business within ResMed’s respiratory care portfolio, the companies reported.

Get the full story at our sister site, Drug Delivery Business News.

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ResMed’s Brightree picks up Apacheta

ResMed's Brightree acquires ApachetaResMed (NYSE:RMD) subsidiary Brightree said this week that it paid an undisclosed amount to bolster its software-as-a-service holdings with Apacheta.

Media, Pa.-based Apacheta makes mobile apps that allow companies to automate and streamline business processes in sales, marketing, logistics and field services.

“Apacheta solves many of the business challenges [home medical equipment companies] face in managing deliveries, particularly eliminating missing, lost or incomplete delivery information,” Brightree CEO Matt Mellott said in prepared remarks. “It has already helped Brightree customers save significant time and money, and we look forward to investing in its continued innovation and scalability.”

“We’re thrilled to become part of a healthcare leader that shares our mission: leveraging technology to digitally transform field service management and delivery functions providing quantifiable business efficiencies, better customer care, and improved visibility to logistics practices,” added Apacheta CEO Gregg Timmons. “The HME business is becoming more and more challenging, and like Apacheta, Brightree offers software solutions that eliminate complexity in order to increase productivity.”

ResMed has been on an M&A tear since buying Brightree for $800 million in April 2016. In May of this year it inked a deal to acquire healthcare software developer HealthcareFirst for an undisclosed amount; last month it closed the $750 million acquisition of MatrixCare and its post-acute-care software; and earlier this month ResMed put $225 million on the table for Propeller Health and its digital medicine platform.

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ResMed puts $225m on the table for Propeller Health

ResMed, Propeller HealthResMed (NYSE:RMD) said today that it inked a deal to acquire Propeller Health and its digital medicine platform for $225 million in cash.

Propeller Health, which sells small sensors that attach to inhalers and track medication use, will operate as a standalone business under ResMed’s respiratory care portfolio.

Get the full story at our sister site, Drug Delivery Business News.

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ResMed closes $750m MatrixCare buy

ResMed acquires MatrixCareResMed (NYSE:RMD) said today that it closed the $750 million acquisition of MatrixCare and its post-acute-care software.

The San Diego-based respiratory care giant said it funded the buyout, which represents a 25x EBITDA multiple, using its credit facility. Bloomington, Minn.-based MatrixCare put up sales of $122 million last year, ResMed said.

“We’re all excited to have quickly closed this important deal and can officially welcome MatrixCare to the ResMed family,” ResMed CEO Mick Farrell said in prepared remarks. “ResMed is the world’s top tech-driven medical device company, and we are well on our way to being the top provider of out-of-hospital software. It all fits into our mission of changing millions of people’s lives, whether it’s by treating and preventing the advance of chronic disease or helping someone easily navigate out-of-hospital healthcare settings so they and their loved ones can live their best life.”

ResMed said the deal is expected to immediately add to its adjusted earnings per share. All stock buyback activity is set to stop after the deal closes, the company added. MatrixCare is due to run as a standalone business within ResMed’s SaaS operation, with MatrixCare CEO John Damgaard reporting to software-as-a-service president Raj Sodhi.

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ResMed to pay $750m for MatrixCare

ResMed acquires MatrixCareResMed (NYSE:RMD) said today that it agreed to pay $750 million to acquire MatrixCare and its post-acute-care software.

The San Diego-based respiratory care giant said it plans to fund the buyout, which represents a 25x EBITDA multiple, using its credit facility. Bloomington, Minn.-based MatrixCare put up sales of $122 million last year, ResMed said.

“The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” CEO Mick Farrell. “ResMed is the world’s leading tech-driven medical device company and is well positioned to be the leading out-of-hospital software provider in the market. With our portfolio including Brightree, HealthcareFirst and MatrixCare, we will streamline transitions of care, creating better outcomes for patients, caregivers, and out-of-hospital healthcare providers.”

“By establishing a technology footprint across these major care settings, ResMed will drive an integrated ecosystem of solutions, such as maintaining single-patient records across multiple care settings, generating analytics and insights that can be applied to individuals and whole populations, and streamlining processes for healthcare providers across the care continuum,” added ResMed software-as-a-service president Raj Sodhi.

“We’re thrilled to be part of a global healthcare leader that shares our mission, leveraging technology to improve the quality of life for seniors and those who care for them,” MatrixCare CEO John Damgaard said in a press release. “Out-of-hospital care today is incredibly fragmented, with those struggling to navigate across care settings, and providers often unable to assist. Like MatrixCare, ResMed’s software solutions smooth the path to faster, better care, and a smarter way for clinicians to do business. The entire MatrixCare team and I look forward to joining forces with them.”

ResMed said the deal, expected to close by the end of the year, is expected to immediately add to its adjusted earnings per share. All stock buyback activity is set to stop after the deal closes, the company added. MatrixCare is due to run as a standalone business within ResMed’s SaaS operation, with Damgaard reporting to Sodhi.

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