Inogen Inc, a medical technology company offering respiratory products for use in the homecare setting, has entered into a definitive agreement to purchase Physio-Assist SAS, a privately held company headquartered in France.
Physio-Assist developed and manufactures Simeox, a technology-enabled airway clearance device with a proven efficacy and safety profile, currently used outside of the United States, to treat bronchiectasis that is often present in cystic fibrosis and chronic obstructive pulmonary disease. Simeox is used in pulmonary rehabilitation centers, as well as at home. Simeox has been cleared under CE mark in the EU and is currently being sold in Europe, Asia, and the Middle East.
“This acquisition aligns with our strategy to diversify our portfolio to globally improve patient lives through respiratory care,” says Nabil Shabshab, president and CEO of Inogen, in a release. “Simeox imminently expands our product offering in EMEA and potentially in the US to serve COPD and other chronic disease patients who suffer from bronchiectasis with an innovative, non-invasive, and next-generation airway clearance solution. We believe this is a compelling transaction, as it expands our addressable market opportunity, enhances our long-term growth and profitability, and is expected to generate an attractive return on investment.”
According to Inogen, its strategic rationale for the acquisition is as follows:
- Aligns with Inogen’s strategy to diversify its portfolio and expand market opportunities imminently in the rest of the world and potentially in the US
- Aligns with Inogen’s long-term financial goals
- Leverages Inogen’s commercial infrastructure and capabilities
- Provides a differentiated and clinically proven innovative airway clearance technology with capital sales and desirable recurring revenue from disposables
- Provides access potentially to a large growing bronchiectasis market opportunity with 400,000 to 490,000 patients in the US upon regulatory clearance
“I am very excited about Physio-Assist becoming a part of the Inogen organization and view this as a significant milestone in the journey to scale the Simeox differentiated product offerings globally in service of bronchiectasis and cystic fibrosis patients with unmet needs,” says Adrien Mithalal, CEO of Physio-Assist, in a release.
Inogen will pay approximately $32 million in cash net of debt payable at closing, plus potential future cash performance-based milestone payments based on achievement of goals related to FDA clearance of the device. The total consideration, if all milestones are achieved, will not exceed $45 million. The amount of the performance-based milestones may also be adjusted net of related development costs.
Photo caption: Simeox airway clearance device
Photo credit: Physio-Assist