Home Article OM highlights diabetes, downplays weight loss drugs 

OM highlights diabetes, downplays weight loss drugs 

OM highlights diabetes, downplays weight loss drugs 

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Theresa Flaherty Head Shot

By Theresa Flaherty, Managing Editor

Updated 9:13 AM CST, Wed November 8, 2023

Ed PesickaRICHMOND, Va. – Owens & Minor officials are excited about the future of the Patient Direct segment after posting double-digit growth for the diabetes and sleep categories in the third quarter. 

The segment, which reported revenue of $648 million in the quarter, now makes up about 25% of overall revenue. 

“(Diabetes and sleep) continue to be extremely strong for us,” said Edward Pesicka, president and CEO, during a recent earnings call. “And you think about it, we've got about 1 million new patients diagnosed with diabetes in America every single year. In addition to that, we still believe there's about 20 million Americans who haven't even been diagnosed yet with OSA that have it. So, you just think about the opportunity size out there.” 

OM plans to invest further in the Patient Direct segment but said it would wait until an upcoming investor day to announce further details. 

Asked whether the growth of GLP-1s – weight loss drugs geared toward patients with Type 2 diabetes – could have an impact on OM’s growth, Pesicka said they are proceeding with “business as usual.” 

“We recognize that you’ve got GLP-1s that will help people, but it's not going to be a cure for everything,” he said. “And we really think also that the market has somewhat overreacted to the GLP-1s.” 

The picture wasn’t all rosy, however. OM’s home respiratory lines, including home oxygen and non-invasive ventilation, continue to feel pressure, say company execs, due in part to lingering effects of the Philips recall and a post-COVID lag. 

Also in the quarter, OM paid down $188 million in total debt for a net debt reduction of $500 million for the first nine months of the year, said Pesicka. 

“We remain focused on paying down debt we took on to acquire Apria, as well as making further investments in our people, products and processes,” he said. “These efforts are part and parcel with making Owens & Minor stronger.” 

  • Related: Read ResMed’s take on GLP-1s and their possible impact on sleep therapy market. 

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