Respiri Accelerates US Expansion with $9M Orb Health Acquisition

Strategic Acquisition to Bolster US Market Presence

Respiri Limited (ASX:RSH) has announced the successful acquisition of Orb Health Inc., a move that significantly advances its ambition to become a leader in the connected and chronic care health market in the United States. The transaction, valued at US$9 million, was settled through the issuance of over 160 million fully paid ordinary shares, underscoring Respiri’s commitment to leveraging equity to fuel growth.

Orb Health’s agreement to invest an additional US$0.7 million by subscribing for shares further aligns the interests of both companies, with the first tranche of this investment already underway. This capital injection is expected to support the merged entity’s operational and commercial initiatives as it scales in the competitive US healthcare landscape.

Integration Driving Efficiency and Growth

Respiri has made notable progress integrating Orb Health’s operations, optimising corporate structure, headcount, and systems. These efforts have already yielded significant operational cost savings, which the company plans to disclose in upcoming updates. The consolidation is not only streamlining expenses but also enhancing the combined organisation’s ability to offer a broader range of services.

Existing clients from both Respiri and Orb Health have responded positively to the expanded service offerings, indicating strong potential for contract growth. This reception bodes well for Respiri’s strategy to deepen market penetration and accelerate revenue generation in the US chronic care sector.

Leadership Transition Reflects Strategic Focus

In a notable leadership change, Executive Chairman Nicholas Smedley will transition to a Non-executive Chairman role, reducing his annual remuneration from $240,000 to $75,000. Despite stepping back from day-to-day executive duties, Smedley remains a key strategic contributor, particularly in guiding Respiri’s US market expansion and stakeholder communications.

This leadership adjustment signals a disciplined approach to governance and cost management as Respiri navigates its next growth phase.

Positioning for Future Milestones

The acquisition includes a potential earn-out component, with additional shares payable if Orb Health meets financial targets by the end of calendar year 2025. This performance-linked arrangement aligns incentives and underscores Respiri’s confidence in the combined entity’s prospects.

Respiri’s proprietary wheezo® device, an FDA-approved medical device for remote wheeze detection, remains central to its innovative healthcare solutions. The integration with Orb Health is expected to enhance the delivery and adoption of such cutting-edge technologies within remote patient monitoring programs.

With headquarters in Melbourne and offices in New York City and Miami, Respiri is well-positioned to capitalize on the growing demand for connected healthcare solutions in the US, a market ripe for disruption through technology-driven chronic disease management.