Investment firm acquires RDI

Sunday, February 8, 2004

February 9, 2004

BOCA RATON, Fla. - Sun Capital Partners, a private investment firm, has acquired Respiratory Distributors (RDI), despite a proposal in the Medicare Prescription Drug Act that could translate into a 58% cut in reimbursement for respiratory medications.

Some call Sun’s purchase of RDI, which sells respiratory meds and products related to the treatment of COPD, courageous, but Benjamin Emmons, a vice president for Sun, said the firm believes the respiratory meds market will grow despite the cut.

“We saw the Medicare issue as both a potential challenge and an opportunity,” Emmons said.

Emmons said the weight of the reimbursement cut will fall on the shoulders of pharmacies and HME providers doling out respiratory meds to patients - not RDI. Even if the cut results in an exodus of pharmacies and HMEs from the respiratory meds market, someone will have to pick up the slack, he said.

“COPD isn’t going away,” Emmons said. “There will continue to be firms furnishing these meds to patients, and our product offering is well positioned to provide these firms with what their patients require to treat the disease effectively.”