Breathe easy, because you won't lose any sleep while using ResMed's products. ResMed develops, makes, and distributes medical equipment used to diagnose and treat respiratory disorders that occur during sleep, such as sleep apnea. Most of its products treat obstructive sleep apnea (OSA), a condition in which a patient's air flow is periodically obstructed, causing multiple disruptions during sleep that can lead to daytime sleepiness and other conditions such as high blood pressure. Its products include air-flow generators, face masks, diagnostic products, and accessories. ResMed sells directly and through distributors worldwide to home health equipment dealers, sleep clinics, and hospitals.
ResMed manufactures its products primarily at its Australian facility, though it has additional production plants in China, France, and the US. Its systems are sold in about 70 countries. The US accounts for about 55% of annual revenues, with Germany making up the second-largest market (about 15%).
The company's main products are continuous positive airway pressure (CPAP) systems that deliver pressurized air from an airflow generator through a nasal mask or pillow, keeping the upper airway open during sleep. It also makes variable positive airway pressure (VPAP) systems, which operate on the same principle but deliver different air pressures for inhalation and exhalation.
Sales and Marketing
ResMed's products are sold through its own subsidiaries (mainly in the US, Europe, and Australia) and through independent distributors and representatives. Marketing efforts target consumers and health care professionals.
ResMed reported a 10% increase in revenues in 2012 to nearly $1.4 billion, attributed to increased sales of flow generators, masks, and accessories. Growth in product sales also increased net income by more than 12% that year to some $255 million. The year's results follow a steady pattern of growth over the last decade.
The company has been focused on expanding its geographic reach through the acquisition of a number of medical equipment makers, distributors, and technology service providers in Europe and elsewhere. It is also increasing product marketing efforts and launching consumer education programs to widen its footprint in core regions. In addition, ResMed conducts extensive product development programs to create devices that are not only more effective, but also more comfortable and convenient.
For instance, in 2012 it introduced the Quattro FX for Her mask to cater to the female audience, as well as the Narval CC mandibular repositioning device for patients that need an alternative to PAP therapy. ResMed is also expanding its research activities in new clinical areas, building on research that shows links between sleep-disordered breathing and such conditions as hypertension, stroke, heart disease, and even diabetes. It is also working to increase in-home diagnosis of sleep-disorders through new technologies, such as the ApneaLink home testing device introduced in 2010.
Mergers and Acquisitions
In 2012 ResMed acquired Nova Scotia-based data services firm Umbian, which makes the U-Sleep patient compliance management solution, which helps care providers monitor patients' home CPAP usage. In 2011 ResMed acquired Irish start-up group BiancaMed, developer of a touch-free apnea monitoring device, and Gruendler, a German maker of medical humidifier devices. – less