May 22, 2017

Philips to expand its Sleep & Respiratory Care business with the acquisition of US-based RespirTech

Amsterdam, the NetherlandsRoyal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that it has signed an agreement to acquire Respiratory Technologies, Inc. (RespirTech), a US-based provider of an innovative airway clearance solution for patients with chronic respiratory conditions, such as chronic obstructive pulmonary disease (COPD) and cystic fibrosis. The expansion of Philips’ leading respiratory care portfolio with RespirTech’s vest therapy solution and capabilities will further strengthen Philips’ solutions to manage care in the hospital and at home. As healthcare continues to transform to a value-based care model, Philips is strengthening its respiratory care portfolio to enable its home care and hospital partners to better serve the care network. The transaction is expected to be completed in the coming months, subject to customary closing conditions. Financial details of the transaction will not be disclosed.

RespirTech’s offerings further enable Philips to accelerate its growth in respiratory care, especially for COPD patients with bronchiectasis, an often underdiagnosed and undertreated comorbidity. Moreover, RespirTech’s portfolio includes a robust clinical support program for managing respiratory patients in the home. This will support Philips’ ambition to deliver cost-effective, clinically focused service programs, such as its sleep focused Patient Adherence Management Service (PAMS), which enable health providers to better manage their patients.

 

As a global leader in sleep and respiratory care, Philips offers a broad range of care solutions to manage COPD, asthma and other respiratory conditions at home or in the hospital. These solutions range from air purification to therapies - including airway clearance devices, oxygen, ventilation and respiratory drug delivery systems - and monitoring. RespirTech complements Philips’ solutions with its innovative inCourage* System technology, a proprietary design that pulsates a vest worn by the patient at home. The company also offers single patient-use ClearChest* comfort vests and bands used in hospitals. The rhythmic inflation and deflation of these vests against the patient’s chest help clear the lungs. 

 

“With this transaction, we will broaden our portfolio with a proven therapy to enable patients with chronic respiratory disorders manage their condition and receive the care they need in the home,” said John Frank, Philips’ Business Leader, Sleep & Respiratory Care. “RespirTech’s vest therapy can be applied to a range of respiratory conditions and various neuromuscular diseases, where patients’ compromised abilities to cough often leads to serious respiratory complications and associated higher care costs. By helping these patients help themselves, we aim to enhance the patient’s quality of life and reduce the overall cost of care.”

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Chronic respiratory disorders are of growing significance and a major cause of death in the world. Compromised lung conditions and inadequately cleared secretions make it more difficult to breathe and often lead to exacerbations and costly hospitalizations. The efficacy and safety of vest therapy has been well documented in numerous peer-reviewed studies. Moreover, RespirTech has established a proprietary COPD/bronchiectasis registry involving more than 5,000 patients who are using its vest therapy. The collected data includes patient-reported changes in lung function, hospitalizations, antibiotic use and quality of life after initiating vest therapy. This is in line with Philips’ and RespirTech’s shared vision to establish clinical endorsement of their solutions.   

 

RespirTech was founded in 2004 and is headquartered in St. Paul, Minnesota, US. The company employs approximately 210 employees. 

 

* InCourage and ClearChest are registered trademarks of RespirTech

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2016 sales of EUR 17.4 billion and employs approximately 70,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

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Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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Steve Klink

Steve Klink

Philips Group Press Office

Tel: +31 6 10888824

Ksenija Gonciarenko

Ksenija Gonciarenko

Philips Investor Relations

Tel: +31 20 59 77055

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