Covidien Buys Wearables Maker Zephyr Technology

By Jof Enriquez,
Follow me on Twitter @jofenriq

Covidien has acquired Zephyr Technology, a developer of wearable and wireless patient monitoring devices, for an undisclosed amount, according to reports.

Neither Covidien nor Zephyr has issued a press release regarding the sale, but MedCity News confirmed it with a Covidien executive.

“Our initial focus is really around bringing remote patient monitoring technology to the general care floor in the hospital,” Rhonda Luniak, VP of communications for Covidien, said in an interview with MedCity News.

Dublin-based Covidien will let Zephyr continue its operations in Annapolis, Md., at least during the integration stage, according to Luniak.

In a recent SEC filing, Covidien reported three acquisitions of unnamed businesses in the last six months, totaling $128 million. One of the acquisitions was finalized so recently that the company had not determined its valuation. It is unclear if this refers to the acquisition of Zephyr or two other companies, according to a report by MobiHealthNews.

Covidien also acquired New Wave Surgical for more than $100 million in April and Given Imaging of Israel for $860 million in February.

Zephyr’s line of patient monitoring devices include the FDA-approved, Band-Aid-like sensor BioPatch, and the wearable chest strap BioHarness. Both lightweight devices measure vital signs such as respiration, heart rate, ECG, posture, and activity level, and can transmit data wirelessly to allow clinicians monitor patients away from the bedside.

“Our initial interest is how we can help physicians, clinicians, and other caregivers with remote patient access in healthcare facilities and the home,” said Luniak, who said that the deal was completed back in March this year.

Founded in 2003, Zephyr initially developed its sensor technology to measure the performance of athletes, soldiers, and astronauts in extreme environments. It later launched its remote patient monitoring system, ZephyrLIFE, for use in hospitals and homes.

Covidien, spun off from Tyco International in 2007, makes a variety of medical devices and supplies including laparoscopic instruments, ventilators and oxymeters. The company’s acquisition of Zephyr indicate that it is broadening its product portfolio, particularly in the burgeoning wearables market that is projected to increase from $14 billion in 2014 to $74 billion in 2024 according to a forecast report.