Inogen temporarily halts manufacturing at some locations

GOLETA, Calif. – Inogen says its revenues are expected to increase for the fourth quarter of 2021, but a chip shortage has forced the company to temporarily suspend manufacturing operations at its Texas and California locations. 

Inogen doesn’t expect to furlough any employees as a result of the suspension, as the company currently anticipates restarting manufacturing at all locations around mid- to late February 2022 based on the information available to date. 

For the fourth quarter 2021, Inogen expects revenue to be in the range of $75.9 million to $76.9 million, up 2.6% to 3.9% from the same period in 2020. 

For the full year, it expects revenues in the range of $357.5 million to $358.5 million, up 15.9% to 16.2% from 2020. 

“I am proud of how the organization performed in the fourth quarter of 2021, despite the challenges relating to the constrained availability of semiconductor chips," said Nabil Shabshab, Inogen’s president and CEO. "Our results for the full year demonstrate the progress we are making to build and strengthen capabilities and operating disciplines, drive focused execution behind our new strategic imperatives, and selectively invest in our business to lay the foundation for more sustainable and durable performance and growth." 

Direct-to-consumer sales are expected to be approximately $33 million for the fourth quarter of 2021, a 23.3% increase vs. the same period in 2020. The increase was primarily driven by higher average selling prices over the same period last year.  

Rental revenue is expected to be approximately $13 million in the fourth quarter of 2021 compared to $9.4 million in the fourth quarter of 2020, primarily due to increased patients on service, higher billable patients as a percent of total patients on service, and higher Medicare reimbursement rates. 

Domestic business-to-business sales are expected to be approximately $10.3 million in the fourth quarter of 2021 compared to $24.2 million in the same period in 2020, driven primarily due to the supply chain constraints that limited product availability in this channel.