It’s all about the integration of newer technology and partnerships into established, older tech–or furniture. In late 2014, a seven-year-old early-stage company from Wisconsin had a booth at the NYeC Digital Health Conference. Their digital, connected monitors attached to prescription inhalers and tracking app interested this Editor enough for her to discuss it with a telehealth company she consulted for at the time as a natural fit for their digital remote monitoring of COPD and asthmatic patients. The startup had a few major clients, mainly drug companies, and would have been boosted by Viterion’s VA business. (Editor note: it didn’t go anywhere)
Flash forward to November 2018, and after $70 million in funding and marketing in 16 countries, integration with nearly 90 percent of commercial inhalers, Propeller Health is being acquired by the much larger ResMed for $225 million, closing in March 2019. This is surprising as Propeller never exceeded $10 million in revenue (Research2Guidance).
Why it matters: Propeller brings to ResMed’s older respiratory technology not only new yet proven technology, but also established partnerships with pharma, healthcare, and payer organizations. They inhabit a huge and growing worldwide market. According to WHO, asthma affects 334 million people worldwide; COPD 250 million people. Digital solutions could be targeting as many as 270 million patients by 2023. Propeller also brings eight US FDA 510(k) clearances and CE markings. All of this makes this small digital medical company worth a serious multiple of revenue with the prestige of being a standalone unit within ResMed led by the co-founder. Read more about it from Research 2 Guidance’s “ten major reasons” why Propeller was worth it, Mobihealthnews, and MedCityNews.
An even smaller monitoring company, Early Sense, has made a significant lift (sic) in a partnership with leading hospital bed manufacturer Hill-Rom. Early Sense has been featured at many CES Unveileds (New York) as one of many Israeli companies with a growing US presence. While starting in the hospital area years ago with bed and chair sensors, within the past two years this Editor noted their move into consumer with an under-mattress sleep sensor unit that could track (via an app) your sleep, stress, heart rate, breathing–and fertility. Their clinical version tracks heart and respiratory rates, alerted for patient falls out of bed, and patient movement (or lack thereof) as an indicator of risk for pressure ulcers. Hill-Rom, which claims to be the world leader in hospital beds, is adding the Early Sense technology to its Centrella model to create a smart hospital bed–one that will monitor heart and respiratory rates over 100 times a minute. A 2015 study quoted in the release stated that mortality related to “code blue” events was reduced by 83 percent, cardiac arrests by 86 percent, and reported overall hospital length-of-stay was reduced by 9 percent ICU days by 45 percent.
Why it matters: Even hospital equipment has to differentiate versus competition, and one way is going digital RPM integrated into the bed itself. The least expensive way of doing so is to buy new technology and incorporate in your ‘traditional’ offering. For the smaller company, it is worth its weight in gold in publicity and the potential business through the giant company. Release, MedCityNews, Mobihealthnews