BioTelemetry (NSDQ:BEAT) said today it will pay $7 million in cash to pick up Telcare Medical Supply, which it said was the 1st company to receive FDA clearance for a cellular-enabled blood glucose monitoring system.
The deal will include $7 million in cash up front with the potential for an additional $5 million in performance-based earn-outs, Malvern, Penn.-based BioTelemetry said.
“BioTelemetry is one of the few companies to successfully scale a profitable digital health business. We have a tremendous core competency in real-time remote data collection, analysis, storage and distribution. As we detailed on our last earnings call, we see digital population health management as a natural fit to leverage our expertise and existing partnerships to improve outcomes and reduce costs in some of the more widespread chronic conditions. We chose the diabetes market as our 1st major digital population health initiative because of its significant overall burden on the healthcare system, with estimated direct annual costs in the U.S. of over $245 billion,” BioTelemetry CEO Joseph Capper said in a press release.
BioTelemetry said it expects Telcare to bring in over $5 million in revenue annually and should be near breaking even by the end of 2017.
“Having spent a large portion of my career leading companies focused on diabetes, I understand the complexities and challenges for patients, payors and providers of care. I have seen firsthand the positive effect robust care management programs can have on the lives of people living with this condition. Furthermore, by incorporating the latest advancements in remote digital technology, we will provide the “critical missing ingredient” necessary to close the time and distance gaps endemic in traditional care management programs. Given our clear leadership position in the analysis and transmission of complex digital health information, we are uniquely positioned to accelerate the market penetration of Telcare’s digital population health management solution. Telcare, fueled by its wireless BGM system and highly sophisticated, cloud-based population analytics, provides us with a powerful platform from which to build. We are confident this business will provide a meaningful contribution to our growth over time,” BioTelemetry CEO Capper said in prepared remarks.
In August, BioTelemetry said it won CE Mark approval in the European Union for its Holter analysis software.
The company said the device is usable on a stand-alone basis or with any of its digital holter recorders, and that it expects to market the software under its Millenia brand name.