Medical technology giant ResMed is expanding its focus on the fight against insomnia as it doubles down on investments in digital health after another year of strong demand for its products.
Early Friday, the NYSE- and ASX-listed company revealed a 13% increase in annual revenue in constant currencies, taking in $3.6 billion ($5.1 billion). Operating profits rose 8% as the company declared a quarterly cash dividend of US44c per share.
The numbers came after a strong final quarter of the year, in which ResMed fought hard for the semiconductor chips needed to make its sleep apnea treatment products. Global component shortages have limited the number of units the company can produce.
Chief executive Mick Farrell said he has spent the past few months pleading with suppliers to prioritize orders for ResMed for health devices over companies that want the chips for consumer electronics. .
“Not all providers said ‘Yes, I’ll give you priority over a cloud-connected car or fridge’ – but we’ve had enough [parts] to achieve double-digit growth,” he said. The Sydney Morning Herald and Age.
The company expects supply chain constraints to improve over the coming months, helping the company meet strong device orders. Ongoing problems at competitor Philips have helped spur significant demand for ResMed products, after a recall of Philips sleep therapy devices left a big void in the market.
The company’s chief financial officer, Brett Sandercock, told analysts on an early Friday morning call that ResMed earned between $200 million and $250 million from the Philips recall.
ResMed also announced two acquisitions of German companies in the past two months. Its $1 billion buyout of out-of-hospital care software maker Medifox Dan expands its portfolio of digital health tools, while its purchase of insomnia treatment startup Mementor opens up a new area of interest for the company.
Mementor creates a prescription therapy app called Somnio, designed to help patients with insomnia.