The deal – financial terms of which were not disclosed – will see Ireland-based Aerogen provide license technology and sell assets related to its home care nebulizer and respirator business to Philips in return for an upfront fee and future royalties.
From Aeorgen’s perspective the sale will allow the firm to concentrate its efforts on its acute care drug delivery business according to CEO, John Power.
“Our acute care business has grown at a phenomenal rate over the past five years. Working with the global leaders in acute care ventilation and our independent distribution network we are today recognised as the gold standard for aerosol delivery in acute care ventilation.
“With several important new product releases planned for early 2014 we look forward to expanding our leadership position across all areas of aerosol drug delivery in the hospital environment.”
For Philips the investment continues its expansion efforts according to Brent Shafer, CEO Home Healthcare Solutions at Philips Healthcare, who said: "This agreement is a key enabler in the development and marketing of respiratory drug delivery solutions to manage patients in the home.
"Inhalation therapy plays a key role in treating chronic respiratory problems and I believe that with Aerogen's technology we are further expanding on our promise to improve people's lives through meaningful innovation.''
Philips has been steadily building its global respiratory delivery technology over the past few years, beginning in 2007 when it acquired Respironics, a respiratory technology and sleep firm, for around $3.6bn (€2.6bn).
The following year the Dutch firm bought the aerosol business of Italian manufacturer Medal in a deal designed to firmly establish its presence in the European homecare nebulizer market.
Later that year Philips purchased Hong Kong-based Melhk and its subsidiary Melmedical, gaining a facility for the manufacture of nebulizer compression systems in Guandong in southern China.