Viemed: Vents, sleep performing well

LAFAYETTE, La. – Viemed Healthcare is selling back a “large number” of its aging ventilator fleet that was affected by a recall and will use the capital to buy new equipment at a cost advantage, company execs said. 

During the second quarter, Viemed sold back approximately 15% of its vent fleet to Philips, which began offering a buyback program for Trilogy that had been subject to a recall.  

“The recent Philips recall of these older machines has presented a unique opportunity to replace these devices and alleviate the need for future servicing,” said CEO Casey Hoyt on a recent call to discuss the company’s second quarter financial results. “We've entered into an agreement with Philips to buy back a large number of our affected events. By leveraging substantial volume purchase discounts with manufacturers of new ventilators, we can use the proceeds from the buyback to significantly reduce the average age of our VIP fleet without negative impacts on our overall cash flows and P&L.” 

Viemed’s vent business continues to perform well, growing 4.4% sequentially, and with the market still largely untapped, company execs are optimistic about the next 18 to 24 months. 

Hoyt believes a new study on noninvasive ventilation, commissioned by AAHomecare and performed by Dobson Davanzo, will increase awareness of the benefits of that product category in particular. 

“Market penetration for non-invasive ventilation remains in the sub-10% range and we are observing considerable demand widespread throughout the country,” he said. “We believe this new study will further educate payers on the substantial advantages of non-invasive ventilation, reinforcing the significant benefits already highlighted by existing research.” 

Sleep also continues to experience strong growth and now represents 15% of Viemed’s revenue mix, something that may be attributable, at least somewhat, by weight loss drugs, says Hoyt. 

“The GLP-1 craze may be contributing to this increase in sleep volume, as more folks are addressing their health concerns at higher rates around the country,” he said. “Sleep has grown at a double-digit quarterly rate over March. CPAP and sleep lines continue to thrive reflecting the enduring demand and effectiveness of positive airway pressure solutions.”