Aussie medtech powerhouse makes bold move, acquires digital sleep and respiratory company

MedTech & Diagnostics News: With the aim of improving health outcomes for those suffering from obstructive sleep apnoea (OSA) or chronic obstructive pulmonary disease (COPD), medtech company, ResMed, has announced its acquisition of Somnoware.

Somnoware’s software offers an all-encompassing platform that streamlines processes for clinicians and testing labs. From diagnosing and evaluating test results to ordering PAP treatment equipment, scheduling appointments, and tracking PAP compliance, Somnoware provides a seamless experience within a patient’s electronic health record.

The newly acquired software will seamlessly integrate with AirView which connects to ResMed’s sleep and ventilation devices to help monitor patients’ respiratory conditions, and Brightree, which is aimed specifically at post-acute care providers.

ResMed Sleep & Respiratory Care President, Lucile Blaise, expressed enthusiasm about the acquisition, stating, “We are thrilled to welcome the Somnoware team to ResMed. Our goal is to drive wider adoption of Somnoware’s open and interoperable platform, ensuring that more individuals with OSA or COPD receive the diagnoses and treatment solutions they need. Ultimately, we want to improve patients’ experience and their overall health.”

While some businesses are struggling in the current environment with rising interest rates and elevated inflation, ResMed is one company that is still doing well. Part of that is due to Philips, a medtech competitor that recalled some of its CRAP machines from the sleep apnoea market. ResMed estimated that revenue added from the Philips recall for the full fiscal year was in the range of $230 million to $250 million. 

Bill Shoop, General Manager for ResMed North America, explained, “We are very excited about this acquisition. Somnoware’s offering has been well received in the marketplace and naturally complements our ecosystem of digital solutions. Adding Somnoware to our portfolio will help physicians, sleep labs, and home medical equipment providers drive greater efficiency and deliver better patient care.”

Somnoware’s cofounder and CEO, Subath Kamalasan, said “I’m thrilled to embark on a shared mission with ResMed to guide people toward better sleep and improved breathing. Our partnership will open new avenues for physicians to manage chronic care effectively. Together, we are committed to driving innovation and delivering solutions that improve the health of patients with sleep disorders and other chronic respiratory diseases.”

ResMed plans to retain all Somnoware staff, integrate its offerings into the ResMed brand and solution ecosystem, and maintain the open and device-agnostic nature of Somnoware’s software. This approach ensures that end users can continue to interoperate with various testing solutions and place orders for treatment devices and accessories from any supplier.

While the financial terms of the acquisition were not disclosed, ResMed confirmed that the transaction’s financial impact is not material to its consolidated financial results. This acquisition marks a significant milestone for ResMed, solidifying its position as a leading innovator in sleep and respiratory care diagnostics and paving the way for improved patient care.

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