Owens & Minor: ‘We’re only getting started’ 

RICHMOND, Va. – Owens & Minor’s Patient Direct segment is experiencing “considerable tailwinds” driven by the large numbers of U.S. adults suffering from chronic health conditions, company execs say. 

In particular, the company continues to see growth in diabetes and sleep therapy, despite the “groundswell of support” for GLP-1 weight loss drugs, CEO Edward Pesicka told investors on a recent call to discuss the company’s second quarter 2024 earnings. 

“We’re not currently seeing an impact of GLP-1 on our patient population,” he said. “The diabetic patients we serve are primarily Type 1 or insulin dependent, which requires continuous glucose monitoring regardless of GLP-1 use. With respect to sleep apnea patients, while GLP-1s may help some patients, there are still 80% of the population with sleep apnea that are not yet diagnosed.” 

Patient Direct revenue for the quarter was $660 million, an increase of 4% year over year.  

Clearing the backlog 

Owens & Minor is still seeing a backlog related to the Change Healthcare cyberattack in the first quarter, which the company expects to improve throughout the rest of 2024, says Jon Leon, senior vice president, corporate treasurer & interim CFO. 

“We’re doing a very good job of clearing that and bringing on new providers to help us with that process,” he said. “At any point in time, there’s a queue of 10,000 customers waiting for supplies and we saw that into June grow to as much as 50,000. So that’s has certainly impacted growth and a lot of that is predominantly sleep supplies.” 

On the right path 

With Owens & Minor’s recently announced acquisition of Rotech Healthcare, the company is focused on its long-term strategic plan, says Pesicka. 

“From driving efficiencies, improving customer service to building strong organic growth channels and the plan to add Rotech to our Patient Direct segments, all of which proves we are on the right path and only just getting started,” he said. 

• Owens & Minor’s acquisition of Rotech Healthcare will provide the company with an on-ramp to DME