Inogen Physio-Assist Simeox airway clearance technology
The Simeox system acquired by Inogen. [Image from Physio-Assist]

Inogen (Nasdaq: INGN) announced today that it completed its previously announced acquisition of Physio-Assist.

Goleta, California-based Inogen announced its plan to acquire the French airway clearance technology developer in July. The deal includes a $32 million payment upfront and could reach up to $45 million in total.

Physio-Assist develops and manufactures its Simeox technology. Simeox, which currently has availability outside the U.S., is a technology-enabled airway clearance device. It treats bronchiectasis, where the lung’s bronchi become damaged and widened. It often occurs in cystic fibrosis and chronic obstructive pulmonary disease (COPD).

Pulmonary rehabilitation centers use Simeox, although it also offers in-home capabilities. The system has CE mark and other commercial availability in Asia and the Middle East. As a result of the closing of the deal, Inogen owns Physio-Assist now. It intends to market Simeox outside the U.S. and continue with preparations for FDA submission.

Inogen says the acquisition aligns with its strategy to diversify its portfolio and expand market opportunities imminently. The deal also aligns with the company’s long-term financial goals.

“Physio-Assist’s Simeox product provides a differentiated and clinically proven innovative airway clearance technology which will add a sizable, growing, and underserved airway clearance market opportunity in support of our strategy to become a multi-portfolio global respiratory care company,” said Nabil Shabshab, Inogen president and CEO. “Welcoming Physio-Assist to Inogen will add the Simeox airway clearance and mucus management solution to our portfolio and allow us to positively impact patients earlier in their disease journey.”

Inogen expects the acquisition to help it access a large, growing market opportunity in the U.S. It expects an immaterial impact on 2023 revenue. Given the investment needed to garner FDA clearance and launch in the U.S., Inogen expects an accretive impact to adjusted earnings in 2027.

“I am pleased that Inogen can now deliver a broader set of effective solutions, empowering patients to better manage their respiratory conditions in the comfort of their homes while allowing the benefits of ambulation,” Shabshab added. “We are also excited about Simeox’s revenue model whereby recurring revenue will be generated by the sale of disposables in addition to the capital sales per device.”

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