This morning Biofourmis, maker of an artificial intelligence-enabled monitoring and decision support platform, announced its plans to acquire Zürich, Switzerland-based wearable biosensor company Biovotion. The terms of the deal are not disclosed; however, we do know the deal is made up of a combination of cash and equity.
The acquisition will include Biovotion’s clinical grade-wearable technology Everion, as well as its entire portfolio and pipeline, team, clients, partners and patents. According to Biofourmis, the patents include both consumer and clinical wearables. The plan is to combine Biovotion’s wearables with Biofourmis’ analytics platform.
The acquisition news coincided with the announcement that Biofourmis is teaming up with pharma giant Novartis for the commercial rollout of a platform that uses predictive analytics to manage heart failure in patient populations. The technology will use Biofourmis’ AI and the recently acquired Everion sensor. Specifically, it will take the form of a product to help predict and analyze drug therapy. The companies will start with the commercial roll out in Asia with plans to expand to the US and beyond.
WHY IT MATTERS
This commercialization deal with Novartis comes just a month after the pharma giant cut its commercialization ties with Pear Therapeutics. In October, Novartis subsidiary Sandoz announced that it was handing sole responsibility for the commercialization of the reSET and reSET-O prescription digital therapeutics back to Pear Therapeutics. This new deal gives some reassurance that Novartis is not completely closed off to digital commercialization deals in the future.
This news also gives the public a little more information about where Biofourmis is looking for the future. In the announcement the company said it is looking to raise a new Series C round by 2021 and is hoping for a $1 billion valuation.
THE LARGER TREND
Founded four years ago, Biofourmis has been making moves in the last year. Just a month ago it acquired Indian company Hastagg, which focuses on software and IT. Both of these acquisitions come after the company closed its $35 million Series B round in May.
Originally founded in Singapore, the company moved its headquarters to Boston last spring.
The company has also been seeking FDA clearances. In May it landed a 510(k) clearance for its RhythmAnalytics, a cloud-based software product that uses deep learning to read and interpret cardiac arrhythmias.