OM credits ‘consistent and strong’ supplies biz 

RICHMOND, Va. – Above-market growth in its Byram Healthcare business contributed to a strong quarter for Owens & Minor’s Patient Direct division, company execs said on a recent earnings call. 

Byram saw double-digit growth across all major product categories in its portfolio of disposable medical supplies, say execs. 

“Our Patient Direct business is consistent and strong, driving recurring revenue as it focuses on serving patients with chronic lifelong conditions who need their products, regardless of the macroeconomic conditions,” said Edward Pesicka, president and CEO. “As I reflect on the past three years, we have repositioned the company for success and long-term profitable growth. We’re really looking forward to the back half of this year.” 

Company execs are also pleased with a successful start to its integration of Apria, which it acquired in March. 

Looking toward the fourth quarter, OM expects to see increased benefits and increased patient growth as the integration accelerates, especially as CPAP devices become available to help reduce a backlog of three to four months, says Pesicka. 

“As the suppliers and the manufacturers start to be able to produce more products and get it out to us, we’re going to be able to start filling those orders at higher rates, probably later in the third quarter and then significantly in the fourth quarter,” he said. 

Company execs are also confident that they will have enough ventilation equipment to provide through the end of the year, now that the U.S. Food and Drug Administration has approved Philips’ remediation plan. That will push out patient-related CapEx on ventilators until early 2024 – a cash flow benefit. 

“We can start returning the ventilators that we have on hand to get those refurbished and put back into the field,” said Andy Long, executive vice president and CFO. “We’re not going to be spending as much on ventilators, because of what we have already getting refurbished.”