F&P sticks with mask-first model

AUCKLAND, New Zealand – Fisher & Paykel Healthcare’s mask revenue was up 28%, or 24% in constant currency, in the second half of the company’s 2023 fiscal year compared to the same period last year, thanks to a boost from its well-received Evora Full mask. 

F&P launched Evora in May 2022 in the United States. 

“It’s been a significant contributor to mask revenue,” said Lewis Gradon, CEO, during a call to discuss the company’s latest financial results. “That is one of the most positive mask launches we have ever experienced, both in terms of customer feedback and sales performance to date.” 

For the full fiscal year, F&P reported mask revenue was up 17% in constant currency. 

When asked about the company’s pipeline for new masks, Gradon said, “We are doing a couple of product launches in the very near future. That’s about all I’m going to give away on that.” 

F&P officials characterized pricing for masks as “relatively stable,” despite market challenges. 

“Because new product introductions may be at a different price point to some of the masks that you’ve been traditionally selling, we kind of think of average selling prices for our mask is relatively stable in the Homecare environment,” said Paul Shearer, senior vice president of sales and marketing. 

With F&P’s focus in the U.S. on masks vs. devices, officials were asked if that puts the company at a disadvantage, particularly with a major competitor, Philips, largely out of the market for two years due to a significant device recall. 

“No,” Gradon said. “But there is a key component: As long as we’ve got a mask that performs better than anything else the patient can get or a dealer can get or a sleep lab can get, we think we’re going to do pretty well. And that is what we’ve been doing for over 10 years now. So, I think the model is proven.” 

Overall, for Homecare, F&P reported $553.8 million in revenue for its 2023 fiscal year, up 18% compared to the same period last year, and the company expects similar performance in the 2024 fiscal year. 

“We see market conditions continuing to return to more of a historical norm,” Gradon said. “And then overall, these assumptions would result in approximately similar revenue growth rates for Hospital and Homecare product groups for FY2024 at May exchange rates.”