OSLO: Observe Medical ASA (OSE: OBSRV) announced the completion of the acquisition of Biim Ultrasound AS, an international medical ultrasound technology company, adding another innovative product that improves patient welfare and outcome and that promotes positive health economics to its portfolio.
With this acquisition, Observe Medical also significantly strengthens and broadens its distribution network into the US, a statement noted.
This combined expansion of product range and distribution capacity are important steps towards delivering on Observe Medical’s ambition and strategy to commercialize and grow its Nordic-based platform on a global scale.
“We are strengthening the product portfolio and expanding our distribution network globally. The aim is to further increase the pace of the commercial roll -out of Sippi®, our automated digital urine meter in both Europe and the US and launch Biim on the European market through our network, in addition to the current US roll-out. For each of these two products, we see a potential NOK 500 million emerging market,” said Björn Larsson, CEO of Observe Medical.
Expanding in the US
Biim Ultrasound’s product, the Biim probe, is a unique and patented, wireless and pocketable ultrasound probe that can scan patients and review images in seconds. The device has been designed to enhance healthcare personnel decision-making and improve patient outcomes.
Having received 510 (k) clearance from the US Food and Drug Administration (FDA) in 2018, Biim is currently being rolled out in the US through a partnership agreement with Fresenius Kidney Care, the leading provider of kidney care services in the US. As part of the agreement, Biim is intended to be used across hundreds of Fresenius’ dialysis centers in the US. Moving forward, the Company plans to apply for a CE marking of Biim during 2022 to get access to the important European market.
This partnership and Biim Ultrasound’s US network are expected to further drive the pace of the global commercial roll-out of Sippi®, Observe Medical’s proprietary automated digital urine meter with biofilm control and wireless connectivity and to accelerate the current roll-out in Europe and drive an earlier US market entry. As previously communicated during the third quarter 2021 report, Observe Medical has strengthened the US patent protection for Sippi and clarified the regulatory pathway into the US.
The acquisition of Biim Ultrasound was settled with a combination of new shares in Observe Medical and cash provided through a fully underwritten rights issue.
Proceeds from the issue will also be used for commercialization and growth initiatives for Sippi® and Biim, repayment of current interest-bearing debt and general corporate purposes.
“We are grateful for the strong support we have seen in this transaction from current and new investors, who share our ambitions. We have a strong and solid platform for growth, supported by organic expansion and targeted acquisitions, which will enable us to commercialize proprietary and innovative medtech products on a global scale,” said Björn Larsson.
“Observe Medical, and the team have come a long way since listing on Euronext Growth in 2019. Having completed the acquisition of Biim Ultrasound today, we now have two significant medtech products in our portfolio and a strong global network of partners. We are confident in the opportunities this deal will deliver for our stakeholders,” Larsson concludes.