Medical technology company Tactile Systems Technology (Tactile Medical) has acquired International Biophysics’ AffloVest respiratory therapy business and related assets.
Developed and manufactured by International Biophysics, AffloVest is a portable, wearable vest designed for the treatment of chronic respiratory conditions using airway clearance management.
The battery-powered, High Frequency Chest Wall Oscillation (HFCWO) device can be used for breathing conditions related to chronic obstructive pulmonary disease (COPD), such as bronchiectasis.
It can also potentially treat conditions that develop due to neuromuscular disorders and cystic fibrosis.
Tactile Medical noted that the device was demonstrated to lower the use of antibiotics, emergency room visits and hospital admissions.
Furthermore, AffloVest’s design offers freedom and mobility meant to enhance patient adherence.
AffloVest is expected to strategically complement Tactile Medical and is in line with the company’s focus on at-home treatments for patients with underserved chronic diseases.
Tactile Medical president and CEO Dan Reuvers said: “We expect to promote AffloVest’s patented, portable design, demonstrated clinical outcomes, and established reimbursement within the Durable Medical Equipment (DME) channel to drive AffloVest to contribute to our overall company goal of 20%+ revenue growth going forward.
“Longer term, we believe adding a mobile, wearable therapy to our portfolio invites synergy within our R&D roadmap as we advance our goals within ease-of-use and digital engagement.”
Tactile Medical has financed the acquisition with cash on hand and $55m of borrowings under its existing credit facility. The credit facility is being revised in connection with this deal.
The transaction expands the company’s annual addressable market opportunity in the US to more than $10bn and is also suitable to its long-term revenue and margin growth profile.
Bronchiectasis is a common respiratory disease with 500,000 adults diagnosed in the US, increasing in the high single-digits each year, Tactile Medical said.
With AffloVest showing robust growth and market share gains by collaborating with respiratory DME companies for commercialisation, the company anticipates high opportunities for more growth.