Resmed (NYSE: RMD) has acquired VirtuOx, an independent testing facility for patients with sleep, respiratory, and cardiac conditions.
“The acquisition reflects Resmed’s commitment to improving the way care is delivered — by making it more accessible, more coordinated, and more patient friendly,” the company said in a May 1 announcement. “With VirtuOx’s at-home diagnostic services, Resmed will be better positioned to support patients earlier in their journey and help health-care providers and home-care companies deliver care in a simpler, more connected way.”
Resmed noted that VirtuOx’s virtual testing platform provides “fast, flexible and affordable options for patients,” thus reducing traditional barriers to diagnosis and subsequent medical care.
The VirtuOx system is an especially good fit for patients “with sleep-disordered breathing or other conditions that are often underdiagnosed,” Resmed said. “For people suspected of having obstructive sleep apnea (OSA), a more streamlined, digital-first experience can make the difference between following through on testing and treatment — or falling out of the care pathway entirely.”
Resmed also noted that the VirtuOx acquisition provides another opportunity to “streamline the diagnostic process and alleviate current bottlenecks, while expanding collaboration with home medical equipment providers to efficiently and expeditiously support patients to start treatment.”
The American Medical Association reported in April 2022 that approximately 30 million people in the United States have sleep apnea, but only 20% of them have been diagnosed. Even people who suspect they have sleep apnea and want to take action could go undiagnosed for months due to sleep lab backlogs.
“This is about creating a simpler, more connected pathway to care,” said Justin Leong, Resmed’s chief product officer. “By integrating VirtuOx’s diagnostic capabilities into our ecosystem, we can help accelerate the time between evaluation and treatment, reduce drop-off, and help more people access the life-changing benefits of therapy for sleep apnea and related conditions.”
“VirtuOx and Resmed are aligned in our focus to simplify health care and expand access,” said Steve Lica, CEO of VirtuOx. “Joining Resmed gives us the opportunity to scale our impact, reach and help more patients, and keep innovating on behalf of the providers and health systems we serve.”
Resmed said VirtuOx will operate as a fully owned Resmed subsidiary once the acquisition is complete, “continuing to serve partners and patients under its existing brand in the near term. The VirtuOx leadership team will remain in place and continue to drive the company’s growth and innovation strategy.”
Financial terms of the transaction were not disclosed, with Resmed noting the acquisition “is not material” to its financial results.
