In brief: Quipt’s ‘robust’ quarter, Cardinal’s raised guidance, Paragon’s 30th anniversary 

CINCINNATI – Quipt Home Medical reported revenue of $65.4 million for the first quarter of fiscal 2024, a 60% increase compared to the same period last year. 

Adjusted EBITDA was $15.3 million (23.5% of revenue) vs. $9.0 million (22% of revenue), a 71% increase; and net income (loss) was $(0.6) million vs. $0.3 million. 

“We continued experiencing robust demand trends in the first quarter across our diverse product offering and are very pleased with the continued record financial and operational results we have posted,” said CEO and Chairman Gregory Crawford. “Our commitment to scaling our operations efficiently is evident in our margin profile, which has shown remarkable consistency. Moreover, we saw steady sequential organic growth, reduced our bad debt expense year over year, and significantly improved our net operating cash flow. To maintain our positive momentum and competitive edge, we will continue putting a high priority on strategic investments in both inorganic and organic growth opportunities, including penetrating our key sales touch points, with the continued expansion into continuum markets which has been very successful to date.” 

Operational highlights from the first quarter include: 

• The company’s customer base increased 56% year over year to 155,434 unique patients served in Q1 2024 from 99,420 unique patients in Q1 2023. 

• Compared to 146,350 unique setups/deliveries in Q1 2023, the company completed 215,370 unique setups/deliveries in Q1 2024, a 47% increase. This includes 123,190 respiratory resupply setups/deliveries for the three months ended Dec. 31, 2023, compared to 69,482 for the same period in 2022, a 77% increase, which the company credits to its continued use of technology and centralized intake processes. 

• The company’s resupply program, which is a major proponent of its 83% recurring revenue base, now consists of approximately 172,000 patients as of Dec. 31, 2023, compared to approximately 100,000 patients for the same period last year. 

Quipt also disclosed that it has received a civil investigative demand from the U.S. Attorney’s Office for the Northern District of Georgia pursuant to the False Claims Act regarding an investigation concerning whether the company may have caused the submission of false claims to government health care programs for CPAP equipment. The company is cooperating with the investigation and the DOJ has not indicated to the company whether it believes it engaged in any wrongdoing.  

Paragon Ventures marks 30 years 

NEWTOWN, Pa. – Paragon Ventures is celebrating 30 years of strategic M&A for health care businesses.  

The company has successfully completed more than 350 strategic mergers and acquisitions transactions in 45 states and across the continuum of health care, including infusion therapy, behavioral health, medical device, pharmacy, home medical equipment and advanced medical technologies. 

“Our 30th anniversary is a testament to the trust placed in us by our clients and partners,” said Jonathan Sadock, CEO and managing partner. “We are honored to have been a part of so many successful transactions over the years and excited about the future as we continue to help business owners realize the ultimate transaction for their health care business.” 

Since its launch in 1994, Paragon Ventures has also expanded to include offices nationwide and most recently opened an office in Puerto Rico.  

Over the past three decades, the company has been a driving force in transformative M&A deals, contributing to the growth and evolution of hundreds of health care organizations nationally.  

“We have had the privilege of working with some of the most talented professionals in the industry,” said Marc S. Rose, founder, president and managing partner. “I am grateful for the support and confidence placed in us from colleagues and clients, past and present.” 

Cardinal Health raises guidance 

DUBLIN, Ohio – Cardinal Health’s medical segment reported revenue of $3.9 billion, a 3% increase, driven by growth in at-Home Solutions and Global Medical Products and Distribution, primarily reflecting higher Cardinal Health brand volumes. The segment’s profit increased by $54 million to $71 million in the quarter, driven by an improvement in net inflationary impacts, including mitigation measures. Overall, Cardinal Health reported revenue of $57.4 billion for the second quarter of fiscal 2024, a 12% increase. "We delivered strong second quarter results across the enterprise, demonstrating continued momentum against our strategic priorities,” said Jason Hollar, CEO of Cardinal Health. "With strong growth in Pharmaceutical segment profit and continued progress against our Medical Improvement Plan, we are continuing to drive operational execution in our core business. Along with our recent announcements of a tech-enabled specialty acquisition and growth portfolio prioritization, we remain focused on best serving our customers and creating value for our shareholders." Cardinal Health has raised its fiscal 2024 guidance range for non-GAAP diluted earnings per share to $7.20 to $7.35, from $6.75 to $7.003. The company reiterated its expectations for profit growth for the former Pharmaceutical Segment of 7% to 9% and updated its profit outlook for the former Medical Segment to approximately $380 million, from approximately $400 million. 

Indie pharmacies report shortages 

ALEXANDRIA, Va. – Nearly 96% of independent pharmacy owners and managers report experiencing shortages or backorders of GLP-1 drugs, according to the results of a new survey from the National Community Pharmacists Association. Most report ordering the drugs upon paid claims (63%) rather than keeping a stock on hand (37%) due to high prices and low reimbursement from pharmacy benefit managers, the survey found. “GLP-1s have been tremendously popular over the last couple of years and are an important, albeit expensive, option for many patients,” said NCPA CEO B. Douglas Hoey, pharmacist, MBA. “But independent pharmacies are in the counterintuitive predicament of seeing top line revenues grow while the bottom line shrinks due to payments from PBM-insurers that are often significantly below the pharmacy’s cost to acquire the medication. When added to the unsustainably low reimbursement pharmacies are seeing on other drugs, plus payment clawbacks, the steering of patients into PBM-insurer affiliated pharmacies and take-it-or-leave-it contracts, it’s a challenging time to own and operate a community pharmacy. Pharmacy’s reputation as the location with the most accessible health care provider in their communities is being threatened.” The survey was sent to about 10,000 independent pharmacy owners and managers from Feb. 2-12, 2024, with 385 responding. 

Kalogon highlights research that validates Orbiter 

MELBOURNE, Fla. - Kalogon’s Orbiter smart cushion improves blood flow and circulation in the gluteal tissue, according to a new study that the company conducted with EC-Service Labs and published in the Journal of Tissue Viability. By utilizing a high-resolution image system to measure blood flow during different seating experiences, researchers analyzed the effects of using Orbiter's offload sequence compared to static modes. The results indicate that when using Orbiter's offload sequence mode, there was less reactive hyperemia compared to static modes without offloading benefits. "The outcomes of this study reinforce the early feedback and experiences of our customers – Orbiter improves comfort and aids in offloading that is difficult to do manually," said Tim Balz, CEO and co-founder of Kalogon. "We strive to transform how people sit comfortably for extended periods, and this research marks an important step toward achieving that goal and gaining scientific validation for our innovations." Kalogon has developed a continuing education course for occupational and physical therapists that includes insights from this research, as well as addresses how to identify those that will benefit from posture/positioning interventions and how to provide comprehensive assessments and dynamic treatment plans for those with posture and positioning needs. While the research highlights significant progress toward understanding blood flow improvement mechanisms associated with Orbiter, the company says further research is needed to understand the full effects of the cushion.   

Senators seek to expand hospital at home 

WASHINGTON – Sens. Marco Rubio, R-Fla., and Tom Carper, D-Del., have introduced the At Home Observation and Medical Evaluation (HOME) Services Act, a bill that would establish a pilot program to test expanding acute hospital care at home. The hospital-at-home program has been essential in helping hospitals free up beds and staff for patients in need of greater care, the senators point out, but only covers acute patients not observation status patients. “Addressing our health care challenges requires innovative solutions,” said Rubio. “The At HOME Services Act builds on the success of the hospital-at-home program to lower costs and burdens and improve patient outcomes and satisfaction.” Sen. Marsha Blackburn, R-Tenn., is also an original co-sponsor of the bill. The pandemic showed that meeting patients where they’re at is possible and often preferred, the senators say. “That’s why I worked to increase and expand access to hospital-level care from the comfort of home,” Carper said. “These services have seen tremendous success for people across the country, including in Delaware, and the At HOME Services Act would build on these programs to continue reducing costs and improving patient outcomes.” 

Edgepark adds new automated insulin delivery device to portfolio 

TWINSBURG, Ohio – Edgepark is now offering the newly launched Beta Bionics iLet Bionic Pancreas fully automated insulin delivery (AID) system as part of its comprehensive diabetes management solution portfolio. The iLet does not require carbohydrate counting for carb-aware users and fully automates 100% of insulin doses. Designed for anyone 6 years of age and older living with Type 1 diabetes, it eliminates the traditional manual work previously involved with using an insulin pump. “It’s deeply critical that our customers have access to the latest innovations that remove complexities to care, especially when managing a disease as complicated as Type 1 diabetes,” said Anthony Alvarez, senior vice president and general manager, Edgepark. “Edgepark is thrilled to offer the iLet as a first-of-its-kind device that uses automation to make diabetes simpler to navigate.” The iLet automatically delivers basal, correction and meal doses based on a user’s own real-time health data, providing more freedom to the user in their daily life. The system also learns a user’s personal trends to adjust insulin, including how many carbs are normally consumed during meals, corrections needed and more.