As the challenges posed by the COVID-19 pandemic have greatly accelerated the adoption of digital and telemedicine methods, Philips acquired Cardiologs after a substantial investment in BioTelemetry, thereby enhancing the Dutch conglomerate’s patient monitoring and Diagnostic capabilities.
This transaction was also carried out after a series of mergers and acquisitions in the cardiac monitoring submarket, starting with the acquisition of BioTelemetry in December last year. Since then, Boston Scientific has acquired Preventive Solutions for US$925 million, and Hillrom has acquired Bardy Diagnostics for US$375 million. This transaction was later challenged by Hillrom, but eventually moved forward after a court order.
Philips is prioritizing the use of artificial intelligence and predictive data analysis as part of its strategic focus to help clinical decision-making and improve the quality and efficiency of healthcare services.
In January of this year, Philips announced that it would spend $635 million to acquire Capsule Technologies, an information platform that connects medical devices and electronic health records through a vendor-neutral system that collects and analyzes patient data.
Philips said that the acquisition of Cardiologs will complement its existing cardiac monitoring and diagnostic products and increase ECG analysis and reporting services. With the addition of BioTelemetry, Philips' cardiac care product portfolio already includes real-time patient monitoring, treatment equipment, telemedicine and hospital informatics, as well as dynamic cardiac diagnosis and monitoring. BioTelemetry serves more than 1 million patients every year through its remote heart monitoring network.
Cardiologs' heart disease screening and ECG analysis applications are based on machine learning algorithms and are independent of vendors. Philips stated that the technology has received the CE mark and FDA approval for the detection of arrhythmia, aimed at reducing reporting errors and simplifying clinicians' workflow and patient care.
Cardiologs' cloud-based AI ECG analysis tool was approved by the FDA in 2017. The company stated in its submission to the FDA that the positive predictive value of the technology for detecting atrial fibrillation is 91%, while the positive predictive value of traditional testing methods is 59%.
The company first set foot in remote patient monitoring this summer, launching a smart watch platform for arrhythmia electrocardiogram analysis.
According to data from the European Society of Cardiology, atrial fibrillation is the most common arrhythmia, affecting more than 40 million people worldwide. This condition is asymptomatic in many patients, and if left undiagnosed and treated, it increases the risk of stroke, heart failure or power outages.
Cardiologs raised US$15 million in Series A funding last year in a funding round led by venture capital firm Alven, bringing its total capital raised since its establishment in 2014 to more than US$25 million.
Philips said that according to customary closing conditions, the acquisition is expected to be completed within the next few months. Cardiologs has approximately 70 employees, and these software engineers and data scientists are expected to join Philips.
Get a free daily newsletter read by industry experts
"It's really like we were operating in the 1950s," a consultant said of the process. The US Food and Drug Administration has held two meetings in the past year to consider improvements.
As the demand for rapid coronavirus testing at home is strong again, medical technology companies are focusing on over-the-counter and direct-to-consumer diagnosis of diseases other than COVID-19.
Subscribe to MedTech Dive to get headlines, trends and analysis
Get a free daily newsletter read by industry experts
Want to share company announcements with your colleagues?
"It's really like we were operating in the 1950s," a consultant said of the process. The US Food and Drug Administration has held two meetings in the past year to consider improvements.
As the demand for rapid coronavirus testing at home is strong again, medical technology companies are focusing on over-the-counter and direct-to-consumer diagnosis of diseases other than COVID-19.
Free newsletter covering top industry headlines