OM’s Patient Direct business ‘tracking ahead of expectations’

RICHMOND, Va. – Owens & Minor’s Patient Direct business saw double-digit organic growth across all categories in the third quarter, say company execs.  

The Patient Direct segment includes sleep, diabetes, urology, ostomy, and continence and wound care products and supplies. 

“The synergies we are generating within our Patient Direct business are tracking ahead of expectations,” said Alex Bruni, executive vice president and CFO, during a recent call to discuss the company’s third quarter earnings, “and we continue to expect Apria to add over $900 million of revenue and over $180 million of adjusted EBITDA for its nine months of contribution in 2022.”

In the next few years, OM expects synergies to add incremental annual revenue of $80 million to $100 million, and an incremental annual adjusted EBITDA of $40 million to $50 million, according to Bruni. 

The sleep business, in particular, performed well, thanks to a “better than expected” ability to source equipment and reduce a backlog of orders, said Ed Pesicka, CEO. 

“With the backlog of sleep patients clearing and the patient census growing, we will see more sleep supply sold in the future,” he said. “And this will benefit the bottom line. This highly recurring revenue base will compound nicely as we head into 2023.” 

The Patient Direct business will continue to comprise an increasing portion of total company earnings and cash flow, says Pesicka.  

“I’ve watched (Apria and Byram) continue to grow,” he said. “So just think about that – the ability to cross-sell, the ability to identify opportunities – I would say there's synergies on both sides and we've embraced the fact that Byram has learned from Apria and Apria has learned from Byram.”