Health informatics: ResMed says it has ‘yearlong lead’
SAN DIEGO – The competition in health informatics-driven sleep therapy products is heating up, but ResMed officials say the company is in a good position because it had a head start.
“It’s actually good for the market, for the basis of competition in sleep apnea, to shift toward health informatics because it provides end-to-end care for patients,” said Jim Hollingshead, president, Americas, during a conference call to discuss ResMed first quarter 2016 fiscal year financial results. “It will provide better bang for the buck for the entire healthcare system. And it puts us in a very good position because we’ve enjoyed more than a yearlong lead in that now, and we’ll continue to press that lead, so we feel very confident.”
ResMed’s health informatics platform includes U-Sleep, software that allows providers to monitor and manage their businesses, and ResMed Resupply (formerly Jaysec and CareTouch).
It’s these solutions, ResMed officials say, that helped the company to post a 39% increase in flow generator sales for the first quarter, led by Air Sense, a CPAP device that’s part of the Air Solutions platform. For the previous quarter, it posted a 53% increase.
“One of our customers has allowed us to report on their increased staff efficiency and accelerated business growth after adopting Air Solutions from ResMed,” said Mick Farrell, CEO. “Based on their own data, this customer is saving 80 labor hours per month, reducing the number of unreached patients by more than 85% and increasing the number of new patient setups by 55% on a year-over-year basis. These results are a big part of why so many customers are partnering with ResMed.”
Just one year after launching the Air Solutions platform, ResMed has more than 1 million patients with “connected devices” sitting on their bedside tables, officials say.
“As these devices provide daily updates to the cloud, it allows ResMed to provide actionable information for patients, physicians, providers and payers,” Farrell said.
What ResMed has been learning on the CPAP side, it soon plans to apply to its other respiratory devices, officials say.
“We are already taking AirCurve 10 data to the cloud, and you will hear more from us on this front as we move forward,” Farrell said of the bi-level device. “Watch this space.”
Overall, ResMed reported net revenues of $411.7 million for the three months ended Sept. 30, 2015, compared to $380.4 million for the same period last year, an 8% increase. Net income was $80.4 million vs. $83.3 million.
For the Americas, ResMed reported net revenues of $254.2 million for the three months ended Sept. 30, a 23% increase over the same period in the prior year. Net income was $98 million, a 4% increase.