Resmed looks to customers to ‘share the load’ of inflation

SAN DIEGO – Resmed officials say the company will implement what they call "modest price increases" as inflationary pressures continue to affect its business globally.

During the company's fourth-quarter earnings call, CEO Mick Farrell said Resmed has worked to offset higher costs through productivity gains and operational efficiencies, but inflation has reached a point where additional measures are necessary.

"I can tell you, look, nobody is immune to the global inflation that there is right now," he said. "And we see that in fuel costs, freight costs. Many of us see it in our groceries, bread, milk, and gasoline and so on. And so, what we're looking to do is work with all of our customers in 140 countries and sort of share the load with that. And we will be looking at modest price increases as we work with our customers."

The comments come after AdaptHealth disclosed during its second-quarter earnings call that an unexpected manufacturer price increase is expected to have a $30 million impact on its results during the second half of 2026. Company officials did not identify the manufacturer.

Resmed officials said the company turned to price increases only after exhausting other options to offset rising costs.

"We're in an inflationary environment, and we've done everything we can," said Aaron Bloomer, CFO. "(We’re) so proud of the work the supply chain team has done over the last couple of years, but just given the inflation, we can no longer offset inflation with productivity alone. And as part of actively managing our portfolio, we are taking, again, modest price increases that (are) going to build as we progress throughout fiscal year 2027."

Resmed officials emphasized that they are mindful of the financial pressures facing providers, particularly those operating under capitated reimbursement arrangements and tight margins.

"What I can say is, for customers who work with us and we have contracts on volume and price, we will honor those terms if they honor their terms around volume and price," Farrell said. "But as we go to negotiate new contracts and as we work forward, inflation has to be addressed."

Astral recall creates $75 million headwind

Company officials said Resmed is pausing sales of its Astral ventilators during fiscal year 2027 as it works through a recall involving certain Astral 100 and Astral 150 devices, creating a $75 million headwind for the year.

Resmed also recorded a $42 million charge during the fourth quarter of fiscal year 2026 to address the estimated costs associated with the field action.

"We haven't made any decisions for fiscal 2028 or beyond as yet," Farrell said. "And we will make those over time as we keep ourselves laser focused on every electronic component (going) straight to the sickest and most severe patient first and we work our way through clinical guidance of our customers and the physicians and their patients worldwide."

In July, Resmed issued a voluntary global Medical Device Correction/Field Safety Notice for Astral 100 and Astral 150 ventilators manufactured before October 2024 due to an internal component issue that may cause the devices to stop delivering therapy.

ŌURA partnership feeds patient funnel

Resmed officials said the company’s partnership with smart ring maker ŌURA is generating stronger-than-expected engagement and helping identify people who may have undiagnosed sleep disorders.

The partnership aims to expand access to sleep health education and connect consumers with pathways to diagnosis and treatment.

"Approximately 13,000 users have come to resmed.com from the ŌURA app, with thousands of them taking the Resmed sleep assessment, and approximately 75% of those assessed identifying as previously undiagnosed," Farrell said. "This highlights the potential of consumer wearables to drive earlier sleep health intervention."