Inogen rides B2B tailwind, as POC adoption reshapes channel mix

BEVERLY, Mass. – Inogen’s business-to-business channel is benefiting from the accelerating adoption of portable oxygen concentrators (POCs), a shift that is weighing on its direct-to-consumer and rental channels but creating opportunities to drive additional sales of complementary respiratory products.

 “The shift that we see within the U.S. from oxygen tanks to POCs has an impact on both direct-to-consumer, as well as rental patients, which is also creating that tailwind for us within the B2B channels,” Kevin Smith said during a conference call to discuss the company’s financial results. “It allows us to have additional pull-through with other technology and products with the Aurora mask, the Voxi 5 and eventually the Simeox.”

Inogen launched the Aurora line of CPAP masks in January, and the Voxi 5 stationary oxygen concentrators, in partnership with Yuwell, in 2025. The Simeox is under a limited market release.

Uptake on ‘sticky’ Aurora CPAP masks

Inogen will present the results of a clinical study at SLEEP 2026, June 14-17 in Baltimore, showing that CPAP users who are already satisfied with their existing masks preferred the Aurora mask when they tried it.

“Presenting a peer-reviewed dataset at this type of industry conference is how a new entrant like us builds credibility with clinicians and accelerates adoption through the HME channel,” Smith said. “The overall commercial feedback has been encouraging. HME partners and respiratory therapists have responded positively to the product and to the evidence behind it.”

Inogen is also seeing high reorder rates from CPAP users who have started on Aurora masks, Smith says

“We have seen those reorder rates coming in on a monthly basis at a very high level,” he said. “So that tells us that it is sticky, and this is a good signal for us.”

Inogen expects Aurora’s revenue contribution to be more back-half weighted in 2026 as momentum builds. The company estimates the U.S. CPAP mask market to be about $2.2 billion, growing at a high, single-digit rate.

“So every point of market share represents roughly $20 million in potential annual revenue,” he said. “We intend to earn a meaningful position in this market, and Aurora is the foundation for that.”

Other highlights from the call

Inogen believes Simeox, which is currently in a reimbursement trial, represents the most exciting long-term opportunities. The device, Smith says, has a $500 million total addressable market in non-cystic fibrosis bronchiectasis that’s growing at a high, single-digit rate.

“It carries an attractive gross margin profile, and the disposable component creates a recurring revenue stream that makes the financial model increasingly predictable over time,” he said. “And beyond the economics, Simeox addresses a patient population that is underserved.”

Rising oil prices do have implications, including logistics-related surcharges, but there was no impact in the first quarter, Smith said.

“If this carries on, we may start to see more impact as the year goes through, but today it is not significant,” he said. “When you also look at petroleum-based components and products – think about resin material – we do have some of that material within our POCs. However, we have supply agreements in place that protect us in the near term.”