ResMed highlights Brightree’s contribution, mask growth in Q3

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Friday, April 28, 2017

SAN DIEGO – It was Brightree that pushed ResMed into double-digit increases for revenues in the third quarter of fiscal year 2017.

ResMed reported revenues of $514.2 million for the third quarter, a 13% increase compared to the same period last year. But excluding contributions from Brightree, which ResMed acquired in April 2016, it reported revenues of $479.2 million, a 6% increase.

“We have full separation of the commercial teams (between ResMed and Brightree), but as we look at the broader market, having a SaaS capability to map workflows and reduce the costs of document management, inventory management, physician and prescription management, and helping even with revenue cycle management for our customers, has really been an advantage for ResMed and the homecare customers that have partnered with us, in allowing efficiencies and freeing up cash flow so they can invest in better patient care,” said Mick Farrell, CEO.

For the Americas, ResMed reported revenues of $332.1 million for the third quarter, an 18% increase over the same period last year. Excluding Brightree, it reported revenues of $297.1 million, a 5% increase.

For Brightree specifically, ResMed reported revenues of $35 million for the third quarter, with growth continuing to track in the low double digits.

“Brightree continues to grow strongly and in line with our acquisition model,” said Farrell, who pointed out there are more than 45 million patients accounts now in Brightree.

Another contributor to revenue growth in the third quarter was masks, particularly the new AirFit N20 nasal mask and the F20 full-face mask. For the Americas, the mask and accessory category grew 8% in the third quarter.

“This is up sequentially from the second quarter, reflecting a strong demand for our new N20 and F20 products,” Farrell said “There's (still) a long way to go on the ramp up of these mask products in the quarter and throughout fiscal year 2018.”

By comparison, the device category grew only 3% in the third quarter. Farrell pointed out, however, that it was up against a large year-over-year comparable of 15%.

“We are maintaining the share we gained during the last 18 to 24 months,” he said.

Farrell cited three “catalysts” for driving up device numbers: increasing sleep awareness with Pegasus Capital and Dr. Oz through a new company, SleepScore Labs; leveraging the trend toward connected care in non-invasive and life support vents, driving high margin growth; and making travel CPAPs more mainstream.

“So these things are potential catalysts for us to drive up that device number,” he said. “And I’ve got to tell you, we plan to do it.”