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Did you know that millions of people live with chronic respiratory diseases like asthma and COPD? These conditions impact the airways and other parts of the lungs. COPD specifically is a group of diseases that cause airflow blockage and breathing-related problems. It impacts roughly 16 million Americans, with many more undiagnosed, and is the third-leading cause of death worldwide. COPD can be difficult to manage, as medication adherence is a challenge and exacerbations often send patients to the hospital.
That’s where we come in. Spire’s continuous respiratory monitoring solution for chronic respiratory disease measures breathing, heart rate, and activity, detecting and alerting the patient and their clinician of an exacerbation up to seven days before symptoms begin. With continuous patient data, clinicians are able to make important medication adjustments prior to a potential hospitalization. In fact, study results demonstrate a 65% reduction in emergency visits and hospital admissions in COPD patients using Spire. Patients just need to wear the Spire Health Tag on their undergarments each day; it's machine-washable and lasts up to 12 months.
Recently, Spire CEO Michael Doyle shared insights with Mergermarket on Spire’s strategic moves, including securing $35 million in growth capital and plans for a potential public offering. Dive deeper into his interview below.
For more information about Spire’s Health Tag, visit www.spirehealth.com and check us out on LinkedIn, Instagram, and X (Twitter).
Spire Health, a San Francisco-based medical device company, is raising USD 35m growth capital, alongside financial advisor Match Point Partners, said CEO Mike Doyle.
Spire, which has raised USD 70m to date, is focused on offering continuous respiratory monitoring for chronic respiratory disease patients, specifically those suffering from chronic obstructive pulmonary disease (COPD).
The company is looking to bring in a lead investor, such as a financial investor or private equity firm, that could invest USD 10m-USD 15m, he said. Additionally, it could add strategic investors as well as see participation from its existing investor base, he said. Its list of strategic investors include Philips [NYSE:PHG] and Resmed [NYSE:RMD], he said. Glide Healthcare Partners is also an investor, he added.
The size of the stake is still to be determined, said Doyle when asked if it would sell a majority or minority stake. Spire aims to close a deal by the end of April, said Doyle.
The company is building towards an initial public offering in the 2026 timeframe, said Doyle. At that point, the company will reach USD 35m annual recurring revenue. It expects to be cash flow positive by the end of 2025 or early 2026, he said.
In the two to three-year timeframe, Spire suspects that it could be acquired in lieu of an IPO, he said. It has already fielded acquisition interest; however, the company needs to achieve scale and reach at least USD 30m annual recurring revenue before that path would make sense, he said.
The company has a number of strategics on its cap table, which could buy Spire, he said. Valuations have tempered somewhat to an average of 11x-12x revenue, he said.
Fresh funds from its growth capital raise will be used to scale its US Food and Drug Administration (FDA) approved continuous virtual care system that uses sensors that are adhered to a patient’s clothing and are able to detect deterioration in the patient’s condition, according to the company.
The Health Tag sensors are able to withstand laundry cycles, do not require charging and can last up to 12 months, according to the company. To date, 150,000 patients have worn Spire’s Health Tag sensors, according to its website.
Founded in 2013, Spire is evaluating applying its remote monitoring solutions into the pharmaceutical and medical adherence market and is discussing options with potential pharmaceutical partners, he said. Its solutions could potentially detect respiration signals after a patient has taken medicine, and notify their physician, said Doyle. The company underwent a feasibility study to test this option, and it may launch this solution in 2Q this year, he added.
By Rebecca Wenzel
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