Philips further expands home healthcare solutions with acquisition of aerosol therapy business of medel in Italy

Amsterdam, the Netherlands and Parma, Italy - Royal Philips Electronics announced it has acquired the aerosol therapy business of Medel SpA in Italy.

In a related transaction, Philips also acquired a manufacturing facility in Guandong, China for nebulizer compressor systems and operations in Hong Kong. Medel is a privately held Italian distributor of nebulizer compressor systems and other home healthcare products. The acquired businesses have become part of the Respiratory Drug Delivery, or RDD, business unit within Philips Home Healthcare Solutions. Financial details of this agreement were not disclosed.

The announcement marks Philips' ambition to expand its Home Healthcare Solutions business, further cementing its global leadership position in this industry, and marks its growing industrial and commercial presence in high-growth healthcare markets in emerging economies.

The addition of the Guangdong facility means another significant expansion of Philips Healthcare's industrial footprint in China following the acquisition of the country's second-largest patient monitoring company Shenzhen Goldway Industrial in April 2008.

Philips Home Healthcare Solutions CEO Don Spence, who in November 2008 succeeded former chief executive John Miclot, said: "When Philips acquired Respironics, the company also had a leading respiratory drug delivery business. Building upon that strength and fulfilling on our ambition to expand our high-growth compressor nebulizer systems franchise, we decided to acquire the aerosol therapy business of Medel which allows us to better serve the needs of our customers and their patients who suffer from asthma, chronic obstructive pulmonary disease (COPD), cystic fibrosis and other respiratory disorders."

The acquired businesses, renowned for innovative design and manufacturing of miniature battery powered portables, includes the aerosol therapy business of Medel in Italy and the manufacturing and logistics operations for the global nebulizer business Melhk in Hong Kong and its subsidiary Melmedical in China.

The acquisition consolidates the leading position Philips Respironics has in the market with its MiniElite and MicroElite portable nebulizer compressors. Demand for compact, lightweight portable nebulizers is being driven by the active lifestyles of children with asthma and seniors with COPD with analysts estimating the global pulmonary drug delivery technologies market to grow between 7% and 9% in the coming period.