SAN DIEGO, California—Sleep and respiratory company Resmed is expanding its footprint in the sleep market with the planned $340 million acquisition of Noctrix Health, which makes a medical device to treat restless leg syndrome, the company announced at its recent earnings report.
Noctrix's non-invasive wearable nerve stimulator, the Nidra Tonic Motor Activation system, received de novo clearance from the Food and Drug Administration in 2023 and designated HCPCS codes from the Centers for Medicare & Medicaid Services in 2024. Restless leg syndrome (RLS) impacts about 7% of the world's population and around 17 million people in the United States alone—so being able to treat it will expand Resmed's reach, CEO Mick Farrell said, adding that "the market and clinical need is incredible."
"RLS has meaningful overlap with our core market of obstructive sleep apnea," Farrell said on Resmed's April 30 earnings call. "RLS treatments from Noctrix are non-invasive, clinically proven and drug free, just like our CPAP/APAP and bilevel therapies."
Prescriptions for RLS treatment largely come from sleep physiciians and Nidra flows through the home medical equipment (HME) channel that Resmed relies on for sleep products.
"We think this is a huge opportunity for a non-invasive medical device with sleep doctors writing prescriptions, HMEs setting them up," Farrell said, adding that Noctrix has already worked with insurers to get reimbursement for their product.
The transaction is expected to close around June 1.