Increased awareness buoys ResMed’s growth

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Friday, January 26, 2018

SAN DIEGO – ResMed posted double-digit growth across the device and mask product categories for the second quarter of fiscal year 2018.

Company officials reported 12% growth on a constant currency basis for both devices and masks in the United States, Canada and Latin America. They reported 5% and 16% growth, respectively, in Europe, Asia and other markets.

“There is a bit of cyclicality in the mask business, especially in the U.S. because of deductibles and the end of the calendar year, but the underlying growth in the market is being driven by patient awareness, and the economy, obviously, has been a little bit stronger,” said Jim Hollingshead, president, Sleep Business, during a conference call on Jan. 22.

Overall, ResMed reported revenues of $601.3 million for the second quarter, a 13% increase compared to the same quarter the prior year. Revenues in the United States, Canada and Latin America, excluding Brightree, were $329.2 million, a 12% increase; revenues in Europe, Asia and other markets were $233.4 million, an 8% increase.

Set to increase patient awareness further in 2018: SleepScore Labs, a joint venture between ResMed, Dr. Mehmet Oz and Pegasus Capital Advisors, has announced an exclusive retail distribution partnership with Williams Sonoma to offer the Robin Sleep System, which combines the SleepScore Max non-contact sleep monitor with the Robin mattress.

“For ResMed, this partnership provides a pathway to inform the 50 million to 70 million Americans who suffocate every night but do not yet know that they need to seek diagnosis and treatment for their sleep apnea,” said Mick Farrell, CEO of ResMed.

In addition to patients, awareness of sleep therapy’s ability to improve health and reduce costs is also increasing among payers. Case in point: France began differentiating reimbursement for telemonitored and non-telemonitored CPAP devices on Jan. 1.

“It's fantastic to see a country like France looking at the space and saying there is an ROI here to invest in telemonitored sleep devices,” Farrell said. “If we have patients that have telemonitored devices they use them more and stay out of hospital more. We’re working with other governments and payers on similar initiatives over the coming period. Watch this space.”

 

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