ResMed readies to scale POC business

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Friday, August 3, 2018

SAN DIEGO – ResMed plans to take a “partnership” approach with HME providers when it more widely launches its portable oxygen concentrator in fiscal year 2019, CEO Mick Farrell said during a conference call last week to discuss the company’s most recent financial results.

An investor during the call asked company officials whether or not they were considering a direct-to-consumer strategy for the Mobi, as has been the strategy for Inogen for years and for Philips for only cash-paying customers more recently.

“You’ll see us work with the channel and help support them,” Farrell said. “Our model is going to be more partnership with the channel than what we’re seeing, I think, from some others. I just don’t think that’s a smart move. Our focus is partnership with the HME channel and helping both of us win, and, really most importantly, helping that patient win and get access to ResMed’s POC if they want to.”

ResMed first made a play to enter the home oxygen therapy market in 2016, when it bought Austin, Texas-based Inova Technologies, the manufacturer of the LifeChoice Activox, an ultra-light POC, and the Activox DUO2, an integrated stationary and POC system.

The company formally introduced the Mobi in January, but the POC has been under a controlled launch ever since, as officials refine the product’s go-to-market strategy.

“We continue to gain insights and gather data,” Farrell said. “We’re getting ready to scale this business. Tens of millions of COPD patients need our help, and we’re preparing to do just that.”

ResMed plans to lean on its reputation for quality and reliability— not only among HME providers but also among pulmonologists—for a hot start in the POC market right out of the gate, company officials say.

“Look, there are a number of players in this space,” Farrell said. “We’re not alone in having a portable oxygen concentrator…(But) throughout FY 2019, 2020 and beyond, you’re going to see ResMed be a major player in the market.”

ResMed will also bring its reputation for connected health into the POC market. On the CPAP side, the company now touts more than 8 million patients on AirView, its cloud-based patient management system, and more than 5 million patients with 100% cloud-connected devices.

“(The Mobi) won’t just be having a device that filters nitrogen,” Farrell said. “It’s going to be a device that’s smart; that moves with the patient and is mobile; that is small, quiet and comfortable, with high-quality oxygen output. But also that’ll have connectivity and have all the value that we provide in digital health across the rest of our business.”