ResMed rides connected health wave overseas

SAN DIEGO - ResMed got a nice boost from Europe and Asia in the third quarter of fiscal year 2018, as growth in the U.S. slowed slightly.

In Japan, a revised reimbursement system went into effect on April 1 that allows physicians to be paid for remote telemonitoring of CPAP patients.

“In anticipation of increasing demand for telemonitoring capability, our Japanese customers have stepped up their adoption of the AirView platform and AirSense 10 devices, our 100% cloud-connected sleep apnea therapeutic devices,” said CEO Mick Farrell during a conference call to discuss the company's financial results for the third quarter of fiscal year 2018. “This was a factor in some of our very strong sales in Japan during Q3.”

Earlier this year, France began reimbursing more for telemonitored devices.

ResMed reported 16% growth on a constant currency basis in the third quarter for Europe, Asia and other markets, compared to 8% in the second quarter; it reported 7% growth in the United States, Canada and Latin America, compared to 12% in the second quarter.

“If you think about our U.S. geography for the last 12 quarters, we've been ahead of market growth and you don't stay ahead of market growth forever, and there are product cycles,” Farrell said. “But I think we did very well in the U.S. market with the comparables on how we performed in the last 12 quarters to grow at 7%.”

ResMed expects increased growth in the U.S. as it launches new products, like QuietAir, which it debuted at Medtrade Spring in March. The diffuser technology, which is compatible with the AirFit F20 and AirTouch F20 full-face masks, reduces noise levels to only 21 dBA.

“We think patients, as well as providers and physicians, will adopt QuietAir technology very rapidly, so watch this space,” Farrell said.

ResMed also expects growth in the U.S. from a new data analytics platform developed by Brightree that's currently in beta test; and from the company's first portable oxygen concentrator, Mobi, that's currently in a controlled product launch.

“We're really excited to see how (the POC business) goes as we partner with home medical equipment companies to reach the 92% of people who should have a portable oxygen concentrator in this country and don't,” Farrell said. “And then when we get it right, we'll scale that to the other 119 countries we do business in.”