ResMed to acquire Curative Medical

Sleep disorder device supplier ResMed (ASX:RMD) today signed a definitive agreement to acquire its Chinese counterpart Curative Medical. According to ResMed CEO Mick Farrell, the partnership between the two companies will “help many millions of people in China suffering from sleep-disordered breathing and chronic obstructive pulmonary disease”.

On completion of the transaction, which is expected to close before the end of 2015, ResMed China and Curative Medical will retain their operational independence and continue to invest in R&D, manufacturing, marketing and sales teams in China. Curative will maintain its name, brands and offerings tailored for the Chinese market and other global markets. Curative employees, including founder and CEO Jason Sun, will continue as members of the combined ResMed and Curative team.

“By partnering with Curative, we will jointly invest to accelerate our growth while improving patient quality-of-life and reducing total healthcare system costs in China,” Farrell said.

The announcement follows ResMed’s acquisition of CareTouch, a provider of internet-based solutions and therapy-focused resupply programs for home medical equipment providers, earlier this month. It also coincides with the company’s release of its results for the quarter and fiscal year that ended on 30 June 2015.

Revenue for the quarter was $453.1 million, a 9% increase compared with the quarter ended 30 June 2014. Revenue for the year was $1.7 billion, an 8% increase compared with the previous year.

“We finished the year with strong double-digit constant currency revenue growth and greater than 50% flow generator growth in the Americas during the fourth quarter,” said Farrell.

The ResMed board of directors has declared a quarterly dividend of $0.30 per share, an increase of 7% from the previous dividend.

ResMed (ASX:RMD) shares were trading 7.05% higher at $8.05 as of around 4 pm on Friday.