06 July 2011
US firm Acquires Irish Start-up
US sleep therapy group ResMed has acquired Irish start-up
BiancaMed in a multi-million euro cash deal.
The University College Dublin spin-out has developed a sensitive
motion sensor that can detect movement and respiration without
being connected to the body and then convert the data into
measurement of sleep and breathing patterns.
A major application for such technology is in the diagnosis of
sleep apnoea - where breathing is interrupted during sleep.
The companies will not disclose the value of the deal but venture
capital group Seventure, which led a €6 million fundraising for
BiancaMed in July 2009, said it had made an excellent return on its
investment.
Altogether, BiancaMed has raised €11 million since it was founded
in 2003 to commercialise research from UCD's School of Electrical,
Electronic and Mechanical Engineering.
ResMed, which is a major player in the global market for therapies
for sleep apnoea, was an early investor. Other investors are
Enterprise Ireland, UCD, InvestNI and venture capital group DFJ
ePlanet Capital.
The US group does not currently have a "contact-free" means of
diagnosing the condition, with most monitoring requiring electrodes
and chest bands. The BiancaMed technology is seen as considerably
less intrusive, cost effective and convenient.
BiancaMed expects to launch its first product - a sleep monitor for
adults - over the next year, initially in Asia and the United
States. It is also developing a monitor for infants
The technology is also being trialled at Vincent's Hospital for
patients diagnosed with congestive heart failure.
The trial, which monitors patients at home for sudden weight gain,
a factor that can signal a problem then sends the data to the
hospital via mobile phone. The hope is that the technology will be
able to cut hospital readmissions significantly.
BiancaMed co-founder Conor Hanley said ResMed was particularly
excited by the potential for the technology in the area of
congestive heart failure. ResMed has recently restructured its
management roles specifically to target this area.
Founding directors Dr Hanley, Dr Philip de Chazal and Prof Conor
Heneghan are among those to benefit from the sale of the
company.
Dr Hanley said all three would remain with the company under its
new owners, who have committed to retaining, and hopefully, adding
to its Irish presence. The company is based at UCD's NovaUCD
incubator centre .
The acquisition marks ResMed's first significant move into
Ireland.
