07.22.21
Rank: #29 (Last year: n/a)
$2.96 Billion
Prior Fiscal: $2.61 Billion
Percentage Change: +13%
No. of Employees: 7,770
Global Headquarters: San Diego, Calif.
KEY EXECUTIVES:
Michael “Mick” Farrell, CEO
Rob Douglas, President and COO
David Pendarvis, Chief Administrative Officer, Global General Counsel
Brett Sandercock, CFO
Jim Hollingshead, President, Sleep and Respiratory Care Business
Raj Sodhi, President, SaaS Business
Katrin Pucknat, President, ResMed Germany
Justin Leong, President, Asia and Latin America
Hemanth Reddy, Chief Strategy Officer
Carlos M. Nunez, M.D., Chief Medical Officer
Andrew Price, President, Global Operations
ResMed wrapped up the first quarter of its 2020 fiscal (which ran July 2019 through June 2020) in celebratory style. CEO Mick Farrell rang The Opening Bell at the New York Stock Exchange to mark the firm’s listing on the Exchange for 20 years. The event also signaled the company’s 30th anniversary. Started as ResCare, a spinout from Baxter Healthcare in 1989, the organization has grown into a provider of cloud-connected medical devices for people with sleep apnea, COPD, and other chronic diseases.
“From a single A$1.25 million investment, ResMed has transformed into a A$28 billion (US$19 billion) connected health leader, changing over 100 million lives a year with either a cloud-connected medical device or through software support of an out-of-hospital care agency,” said Farrell. “I’m proud to be one of 7,500-plus ResMedians worldwide dedicated to improving the quality of so many lives, and one of countless investors who have long seen and supported the value of all that ResMed creates. And we are just getting started.”
Just getting started indeed. The company saw its best fiscal year to date in its 2020 cycle, gaining 13 percent over its 2019 fiscal. That was reflected in a jump from $2.61 billion to $2.96 billion in a year-over-year comparison.
Within the individual businesses, the Total Sleep and Respiratory Care unit gained 12 percent year over year. More specifically, within that segment, Devices experienced 11 percent growth to finish at $1.51 billion (versus $1.36 billion). Masks and other, in comparison, rose 13 percent to close out 2020’s fiscal at $1.09 billion compared to $969 million during 2019’s fiscal. The company attributed the gains to increased sales of its devices and masks, which included more ventilators sold as a result of COVID-19.
Like so many other ventilator producers, ResMed had pledged to increase the production of its systems to help answer the incredible demand for the device due to COVID-19. In the firm’s third quarter, it manufactured 52,000 non-invasive, invasive, and bi-level ventilators, which was about triple the number produced during the same quarter in 2019.
Its substantially smaller business—Software as a Service (SaaS)—exploded with 29 percent gains, rocketing from $276 million to $355 million. ResMed attributed the revenue gain to the acquisition of MatrixCare, which was finalized in November 2018, as well as the growth of its SaaS offerings.
ANALYST INSIGHTS: During COVID, ResMed has been quietly continuing its portfolio expansion to move from providing products to enabling patient solutions. With increased cash from the pandemic, it wouldn’t be surprising to see ResMed engage in new M&A activities to expand its market positions.
While realizing the revenue gains due to COVID-19 would not last, the company kept its future in mind with a number of product developments that would help ensure any post-pandemic decline would not be substantial. One such announcement was the introduction of the AirFit N30, the world’s first tube-down nasal cradle CPAP mask with a front-facing tube. The company’s lightest mask at the time of launch, the AirFit N30 features an adjustable elastic headgear, plus a nasal cradle cushion that sits under the nasal bridge, eliminating soreness in that area. The mask’s curved cushion is designed to provide a secure seal regardless of how the wearer sleeps or moves.
Continuing to improve its mask offerings, ResMed also launched its AirFit F30i—its first tube-up full face CPAP mask—during the 2020 fiscal. The AirFit F30i’s tube-up design makes it easier to sleep in any position. The cushion rests under the nose to help prevent next-day red marks, soreness, and irritation on the nasal bridge. In addition, a quick-release elbow allows users to quickly disconnect and reattach the mask from its tubing at night without taking the mask off.
To help patients make the most appropriate selection among its library of ever-growing mask options (even in a pandemic), the company debuted MaskSelector—a digital tool for remote CPAP mask fittings. The tool creates personalized ResMed mask recommendations based on a patient’s sleep attributes and facial measurements. A home medical equipment provider can supply a HIPAA-compliant single-use link via text or email to a patient, who then answers a brief questionnaire and enters three facial measurements into the ResMed MaskSelector portal. Based on the patient’s responses, the tool will recommend one of the company’s masks, along with options for alternate ResMed mask models and sizes.
Not a product per se, but ResMed launched a solution for COPD patients and physicians. The online resource—resmed.com/COPD—explains what COPD (chronic obstructive pulmonary disease) is, tips for patients living with it, latest research, and leading treatments, including non-invasive ventilation and oxygen therapy. Patients and healthcare providers are also able to sign up for alerts when new research or treatment options come out.
To support clinicians during the pandemic working with ResMed ventilators, the organization launched its secure AirView platform. The cloud-based remote monitoring software helps clinicians across Europe remotely monitor and advise ventilator and bi-level device patients faster, and serve them more safely by reducing in-person visits. With AirView, clinicians and care providers can remotely monitor a patient’s respiratory rate and SpO2, or blood oxygen saturation, two key indicators that should be monitored to track changes in a respiratory patient’s condition.
In less fortunate news, ResMed settled probes and lawsuits that began in 2016 due to the alleged payout of kickbacks in exchange for referrals of its medical devices. The company agreed to pay $37.5 million to resolve the federal claims. The legal issues began due to whistleblower complaints.
$2.96 Billion
Prior Fiscal: $2.61 Billion
Percentage Change: +13%
No. of Employees: 7,770
Global Headquarters: San Diego, Calif.
KEY EXECUTIVES:
Michael “Mick” Farrell, CEO
Rob Douglas, President and COO
David Pendarvis, Chief Administrative Officer, Global General Counsel
Brett Sandercock, CFO
Jim Hollingshead, President, Sleep and Respiratory Care Business
Raj Sodhi, President, SaaS Business
Katrin Pucknat, President, ResMed Germany
Justin Leong, President, Asia and Latin America
Hemanth Reddy, Chief Strategy Officer
Carlos M. Nunez, M.D., Chief Medical Officer
Andrew Price, President, Global Operations
ResMed wrapped up the first quarter of its 2020 fiscal (which ran July 2019 through June 2020) in celebratory style. CEO Mick Farrell rang The Opening Bell at the New York Stock Exchange to mark the firm’s listing on the Exchange for 20 years. The event also signaled the company’s 30th anniversary. Started as ResCare, a spinout from Baxter Healthcare in 1989, the organization has grown into a provider of cloud-connected medical devices for people with sleep apnea, COPD, and other chronic diseases.
“From a single A$1.25 million investment, ResMed has transformed into a A$28 billion (US$19 billion) connected health leader, changing over 100 million lives a year with either a cloud-connected medical device or through software support of an out-of-hospital care agency,” said Farrell. “I’m proud to be one of 7,500-plus ResMedians worldwide dedicated to improving the quality of so many lives, and one of countless investors who have long seen and supported the value of all that ResMed creates. And we are just getting started.”
Just getting started indeed. The company saw its best fiscal year to date in its 2020 cycle, gaining 13 percent over its 2019 fiscal. That was reflected in a jump from $2.61 billion to $2.96 billion in a year-over-year comparison.
Within the individual businesses, the Total Sleep and Respiratory Care unit gained 12 percent year over year. More specifically, within that segment, Devices experienced 11 percent growth to finish at $1.51 billion (versus $1.36 billion). Masks and other, in comparison, rose 13 percent to close out 2020’s fiscal at $1.09 billion compared to $969 million during 2019’s fiscal. The company attributed the gains to increased sales of its devices and masks, which included more ventilators sold as a result of COVID-19.
Like so many other ventilator producers, ResMed had pledged to increase the production of its systems to help answer the incredible demand for the device due to COVID-19. In the firm’s third quarter, it manufactured 52,000 non-invasive, invasive, and bi-level ventilators, which was about triple the number produced during the same quarter in 2019.
Its substantially smaller business—Software as a Service (SaaS)—exploded with 29 percent gains, rocketing from $276 million to $355 million. ResMed attributed the revenue gain to the acquisition of MatrixCare, which was finalized in November 2018, as well as the growth of its SaaS offerings.
ANALYST INSIGHTS: During COVID, ResMed has been quietly continuing its portfolio expansion to move from providing products to enabling patient solutions. With increased cash from the pandemic, it wouldn’t be surprising to see ResMed engage in new M&A activities to expand its market positions.
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
While realizing the revenue gains due to COVID-19 would not last, the company kept its future in mind with a number of product developments that would help ensure any post-pandemic decline would not be substantial. One such announcement was the introduction of the AirFit N30, the world’s first tube-down nasal cradle CPAP mask with a front-facing tube. The company’s lightest mask at the time of launch, the AirFit N30 features an adjustable elastic headgear, plus a nasal cradle cushion that sits under the nasal bridge, eliminating soreness in that area. The mask’s curved cushion is designed to provide a secure seal regardless of how the wearer sleeps or moves.
Continuing to improve its mask offerings, ResMed also launched its AirFit F30i—its first tube-up full face CPAP mask—during the 2020 fiscal. The AirFit F30i’s tube-up design makes it easier to sleep in any position. The cushion rests under the nose to help prevent next-day red marks, soreness, and irritation on the nasal bridge. In addition, a quick-release elbow allows users to quickly disconnect and reattach the mask from its tubing at night without taking the mask off.
To help patients make the most appropriate selection among its library of ever-growing mask options (even in a pandemic), the company debuted MaskSelector—a digital tool for remote CPAP mask fittings. The tool creates personalized ResMed mask recommendations based on a patient’s sleep attributes and facial measurements. A home medical equipment provider can supply a HIPAA-compliant single-use link via text or email to a patient, who then answers a brief questionnaire and enters three facial measurements into the ResMed MaskSelector portal. Based on the patient’s responses, the tool will recommend one of the company’s masks, along with options for alternate ResMed mask models and sizes.
Not a product per se, but ResMed launched a solution for COPD patients and physicians. The online resource—resmed.com/COPD—explains what COPD (chronic obstructive pulmonary disease) is, tips for patients living with it, latest research, and leading treatments, including non-invasive ventilation and oxygen therapy. Patients and healthcare providers are also able to sign up for alerts when new research or treatment options come out.
To support clinicians during the pandemic working with ResMed ventilators, the organization launched its secure AirView platform. The cloud-based remote monitoring software helps clinicians across Europe remotely monitor and advise ventilator and bi-level device patients faster, and serve them more safely by reducing in-person visits. With AirView, clinicians and care providers can remotely monitor a patient’s respiratory rate and SpO2, or blood oxygen saturation, two key indicators that should be monitored to track changes in a respiratory patient’s condition.
In less fortunate news, ResMed settled probes and lawsuits that began in 2016 due to the alleged payout of kickbacks in exchange for referrals of its medical devices. The company agreed to pay $37.5 million to resolve the federal claims. The legal issues began due to whistleblower complaints.