In brief: Inogen increases revenue guidance, Philips enters new era
GOLETA, Calif. – Inogen last week reported double-digit increases in total revenues and net income for the second quarter ended June 30, 2016.
The company reported total revenues of $54.6 million for the quarter, a 23.9% increase compared to the same period last year. It reported a net income of $5.1 million, a 48.7% increase.
“Our strong results in the second quarter of 2016 reflect exceptional performance in our domestic business-to-business sales channel, which demonstrated 61.3% revenue growth over the same period in 2015,” said Ray Huggenberger, CEO. “This was primarily due to traditional home medical equipment provider purchases and continued strong private label demand for our portable oxygen concentrators.”
Direct-to-consumer sales saw 38.5% revenue growth in the second quarter of this year compared to the same period last year, primarily due to increased sales headcount and increased marketing expenses to drive consumer awareness.
Inogen has increased its 2016 revenue guidance to a range of $190 million to $194 million, representing year-over-year growth of 19.5% to 22%. Previously, it provided guidance of $187 million to $191 million.
Philips enters new era
STAMFORD, Conn. – Royal Philips has launched an ecosystem of connected wearable technologies for people who want to take control of their health. The company has made available medical-grade health monitoring devices—a health watch, connected scale, blood pressure monitor and thermometer—and a fully integrated companion HealthSuite Health app. The company says the new devices are designed to help those at risk of chronic disease to measure and monitor their health, and to stay motivated. “We combine deep clinical know-how and rich data, consumer insights and advanced technology to craft solutions which help individuals along the whole of their health journey,” said Jorgen Behrens, business leader, personal health solutions. The company says the launch represents a new era in connected care for consumers, patients and providers, as health care continues to move outside hospitals, and into homes and everyday lives. The devices can be purchased directly from the Philips website or through Amazon. The app is free and available on iOS and Android.
Cardinal’s 2016 financial results break records
DUBLIN, Ohio – Cardinal Health has reported revenues of $31.4 billion for the fourth quarter of fiscal year 2016, a 14% increase compared to the same quarter last year. It reported revenues of $121.5 billion for fiscal year 2016, a 19% increase compared to 2015. “We finished fiscal 2016 having generated the highest revenues, the largest GAAP and non-GAAP operating earnings, and the greatest operating cash flow in our company’s history,” said George Barrett, chairman and CEO. “The Cardinal Health team is well-positioned to adapt, innovate and lead during a time of great change in the healthcare industry.” For its medical segment, Cardinal reported revenues of $3.2 billion for the fourth quarter, a 12% increase, and $12.4 billion for 2016, a 9% increase. The company’s fiscal year 2017 guidance range for non-GAAP diluted EPS from continuing operations is $5.48 to $5.73, representing growth of about 5% to 9% from the prior year.
ConvaTec up for sale?
GREENSBORO, N.C. – The private equity firms that own ConvaTec are preparing the company for sale, according to news reports. Nordic Capital and Avista Capital Partners have appointed investment bankers to prepare the groundwork for a sale potentially valuing ConvaTec in the billions of dollars, according to the Financial Times. ConvaTec, which is based in Luxembourg but has U.S. operations here, is a medical products and technologies company focused on therapies for the management of chronic conditions with leading market positions in advanced wound care, ostomy care, continence and critical care, and infusion devices. An initial public offering is the most likely avenue for exit for ConvaTec, the Times reported. Nordic and Avista, which previously tried to sell the company in 2014, bought ConvaTec for $4.1 billion from Bristol-Myers Squib in 2008. Nordic and Avista are reportedly working with bankers at Bank of America Merrill Lynch, Goldman Sachs and UBS.
CBIC starts dialing
WASHINGTON – The Competitive Bidding Implementation Contractor has kicked off “secret shopper” calls to HME providers with Round 2 re-compete bid contracts, according to VGM. The CBIC uses the calls to make sure contract suppliers are serving beneficiaries. Previous rounds of these calls have resulted in termination letters. If a provider receives such a letter, they have an opportunity to submit a correction action plan and/or appeal the termination. So far, there have been no termination letters for this round of the program, but VGM reminds providers to educate staffers on how to interact with referral sources.
VGM launches impact survey
WATERLOO, Iowa – The VGM Group has launched “The Supplier Impact Survey” to provide lawmakers on Capitol Hill with real-world figures on the impact of competitive bidding on HME providers and their patients. “Congressional offices and policymakers on Capitol Hill have requested more data about how competitive bidding is negatively impacting communities in their districts and across America,” VGM stated in a bulletin. “To meet this request, VGM is launching a new advocacy tool to provide Congress with what they need.” VGM will conduct the survey quarterly to track the “real environment” of the DME industry. The current survey period is from Aug. 4-9.
Numotion inks distribution deal
BRENTWOOD, Tenn. – Numotion will serve as the exclusive U.S. distributor of SoftWheels in-wheel suspension technology. The technology provides rigidity and stability for manual wheelchairs, reducing the pain and discomfort associated with wheelchair use. “We are excited to offer SoftWheel by Numotion to manual wheelchair users, providing a premier lifestyle solution for their mobility needs that can improve quality of life,” said Mike Swinford, CEO of Numotion. SoftWheels’ technology is already in use in more than 15 countries.
Caire opens service center
BALL GROUND, Ga. – Caire, a Chart Industries Company, has opened a new service center in Corpus Christi, Texas. The 5,000-square-foot center, which will operate through a partnership with ReOx Medical Services, a well-known resource for respiratory equipment repair, will employ 10. “This new Caire-Authorized Service Center answers a critical need for our providers in Texas,” said Lanier Hogan, Caire technical service manager. “By partnering with ReOx, we ensure a smooth and quality experience for our customers in this local market.” Services provided at the facility will include pick-up and delivery in select locations, fast turnaround, and factory authorized warranty and out-of-warranty repairs for the Caire portfolio of stationary oxygen concentrators.
Short takes: Breg, WatchPAT
Breg, an integrated solutions provider, announced the launch of Vision 5.0, the latest iteration of its DME workflow management software. Vision automates and optimizes in-house bracing and supplies programs…The FDA has approved WatchPAT, a home sleep test diagnostic device for sleep apnea, for use among patients as young as 12. The decision follows similar approvals in Japan and Europe, and expands the device’s previous use in the U.S. for 17 and older.
People: Brightree, InfuSystem, BOC, Medical Service Co.
Brightree CEO Dave Cormack and his family have funded the construction of the new Children International Community Center and Youth Center in Cartagena, Colombia. The center will benefit 12,000 children and teens…Jonathan Foster, CFO of InfuSystem, has resigned after more than four years at the Madison Heights-based company. Trent Smith, InfuSystem's current vice president and corporate controller, will become executive vice present and chief accounting officer…The Daily Record, an online source for business and legal news, has named Claudia Zacharias, BOC president & CEO, as one of Maryland’s 2016 Most Admired CEOs. Under Zacharias, BOC’s revenue has increased nearly 50%…Medical Service Co. has hired George Breznicki as director of sales. His responsibilities include direct management of all territory managers, sales specialists, account managers and product managers.