Resmed
(NYSE: RMD) has entered into a definitive merger agreement to acquire Noctrix Health for $340 million, according to Noctrix investor Treo Ventures.
Resmed CEO Mick Farrell announced the company’s plan to acquire the startup at its third-quarter earnings call last week. The sleep respiratory technology company expects the acquisition to close on or around June 1, 2026.
Noctrix developed and manufactures a novel non-invasive, wearable therapy to treat drug-refractory Restless Legs Syndrome (RLS). Nidra earned FDA breakthrough device designation in 2023 for its Nidra Tonic Motor Activation System.
“RLS has meaningful overlap with our core market of obstructive sleep apnea,” Farrell said on the call. “RLS treatments from Noctrix are non-invasive, clinically proven and drug-free, just like our CPAP, APAP and bi-level therapies. …Nidra flows through the same [home medical equipment] delivery channel that we here at ResMed lead in market share for our other sleep products.”
“The current therapies for RLS are awful,” Farrell said. “There are pharmaceutical options, old drugs that have many side effects, and we think this is a huge opportunity for a noninvasive medical device with sleep doctors writing the prescriptions, home medical equipment (HME) setting them up.”
Venture capital fund Treo Ventures invested in the startup’s Series B funding round in 2024.
“We believed in this vision from the outset,” Treo Ventures said in a LinkedIn post. “Since our initial investment, the Company completed its pivotal trial, received FDA approval and successfully commercialized the product with very impressive year-over-year revenue growth.”
Related: Resmed Q3 earnings exceed estimates, CFO’s retirement announced
Resmed will invest in R&D, sales and marketing and help Noctrix expand its market access and drive further reimbursement, Farrell said. He also said the startup is growing faster and has higher gross margins than the sleep giant.
“Its revenue growth rate is higher than Resmed’s, its gross margin is higher than Resmed’s, and we’re very excited about this tuck-in,” Farrell said. “The reach of our Resmed brand among sleep physicians and providers, as well as our national and international distribution channel strength, makes us the best owner of this scarce asset.
“We’re going to we’re going to help them get more market access, more reimbursement, and grow faster than they are, and it’s going to be a great team,” Farrel said.
