Sleep, diabetes ‘lead the way’ at Owens & Minor

RICHMOND, Va. – Owens & Minor delivered on almost all expectations for the first quarter of 2025, with the Patient Direct segment performing “exceedingly well,” say company executives. 

Patient Direct revenue was $674 million for the first quarter of 2025, a 6% increase compared to the same period last year. On a same-day basis, revenue increased 7.3% year over year, said CEO Edward Pesicka, during a recent call to discuss the company’s earnings. 

“The Patient Direct segment performed exceedingly well,” he said. “I am pleased to say that almost every therapy category showed good growth, and sleep supplies and diabetes once again led the way.” 

Ostomy, wound care and urology supplies also performed well in the first quarter. Oxygen therapy saw continued improvement, with Pesicka saying “we have seen the bottom for that category and expect growth throughout 2025.” 

‘Ready to move forward’ 

Owens & Minor’s planned acquisition of Rotech Healthcare, first announced in July 2024, is still in play, but the company is waiting for a final decision from regulators. 

“We still expect to close in the first half of 2025,” Pesicka said. “We have our financing in place, and we are ready to move forward.” 

The company also remains engaged with several parties on a potential sale of its Products and Healthcare Services segment, first announced in February. 

“We continue to run this segment with the same level of commitment and attention to detail around serving our customers and delivering high-quality products,” said Pesicka. 

Some price increases ahead 

Owens & Minor’s Patient Direct segment has very little exposure to tariffs, with the vast majority of those products either made in the U.S. or qualified for exemptions under the Nairobi Protocol, Pesicka said. However, the Products and Healthcare Services segment, which operates on a 1% margin, is expected to have annual exposure of $100 million to $150 million.  

“Accordingly, we are currently beginning to implement price increases in our PHS segment that will be effective in early June,” he said. 

• Related: Owens & Minor talks product play, synergy drivers of Rotech acquisition.   

• Related: Owens & Minor explores sale of Products & Healthcare Services division.