ResMed hits supply chain constraints as it responds to major Philips recall

ResMed (NYSE: RMD) saw a dramatic surge in demand for its sleep and respiratory care products after a serious recall knocked competitor Philips out of the market for a year, according to CEO Mick Farrell.

But Farrell also explained during ResMed’s Q4 earnings call yesterday evening that the San Diego–based company is running into supply chain problems as it seeks to respond.

“Global supply chain limitations, including a shortage of electronic components, as well as ongoing freight constraints and costs are impacting our ability to respond to the unprecedented increase in demand for ResMed products,” Farrell said during the call, transcribed by SeekingAlpha. He added that major producers have suggested that chip and electronic components shortages could last 12 or even 18 months.

Get the full story on our sister site Medical Design & Outsourcing. 

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These medtech stocks performed the best in 2020

(From Ishant Mishra on Unsplash)

While 2020 did not go as planned for anyone, with the twists and turns came opportunities for medtech companies to power forward.

Innovations came both as a result of the COVID-19 pandemic and perhaps in spite of the challenges brought on by the virus, highlighted by the increased efforts to produce vaccines and testing while pivoting to artificial-intelligence-based and remote care.

Companies like Moderna arose from nowhere, climbing from a share price of $19.52 to $104.47 over the course of the year as it established itself as a frontronner in the race to get a COVID-19 vaccine to the public, eventually becoming the second vaccine authorized in the U.S.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — has hit new heights over the course of 2020, indicating the upward trajectory of the industry. Over the course of the year, the index grew from a total of $86.8…

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Philips, Google, ResMed among companies joining digital therapeutics standards initiative

Major companies in the medtech space — including Philips, Google and ResMed — are among those joining the Consumer Technology Association’s new digital therapeutics standards initiative.

“With the COVID-19 pandemic, we are seeing faster innovation across all aspects of digital health including digital therapeutics,” said Gary Shapiro, CEO of the CTA.

“This field takes the application of technology beyond just wellness tracking. Companies are now developing solutions that can manage pain, allergies and even address mental health problems. As more people take control of their own health in the comfort and safety of their homes, we must understand what this technology means and how to advance its adoption,” Shapiro said in a news release posted yesterday.

Companies in the initiative include:

Activbody Akili Amalgam Rx Amptify AudioCardio Awarables Bose CareWear Doctor on Demand Ginger GlucoseZone by Fitscript Google Health HP Livongo MagicLeap Mi…
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MedTech 100 roundup: Another high as stocks tick up

For the third consecutive week, stocks in the medtech industry reached heights not yet seen since the COVID-19 pandemic began.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 89.65 points at the end of last week (Aug. 7). Overall, medtech stocks saw a 0.72% increase from the 89.01-point total at the same time a week prior (July 31).

On Aug. 5, the index reached 90.45 points, marking its highest point since that pre-pandemic high, with the previous mid-pandemic high (90.37) coming last week.

The most recent high mark represents just a -2% dip from the Feb. 19 high point of 92.32, marking the smallest margin of decline over the past five months.

Meanwhile, the S&P 500 Index saw a 2.5% increase from July 31 to Aug. 7, and the Dow Jones Index fared even better, positng a 3.8% rise over the same period of time.

Medtech’s lowest point during the COVID-19 pandemic remains at 62.13…

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ResMed beats Street with boost in ventilator sales

ResMed (NYSE:RMD) shares took a slight hit after hours despite on fourth-quarter results that beat the consensus forecast.

The San Diego-based respiratory support device maker posted profits of $177.8 million, or $1.22 per share, on sales of $770.3 million for the three months ended June 30, 2020, for a more than 158% bottom-line gain on sales growth of 9.3%.

Adjusted to exclude one-time items, earnings per share were $1.33, 11¢ ahead of Wall Street, where analysts were looking for sales of $746.9 million.

Increased demand for ResMed’s ventilator devices amid the COVID-19 pandemic contributed massively to the company’s growth in the fourth quarter, although it was partially offset by a decrease in demand for the company’s sleep devices.

“Our fourth-quarter results reflect the strength and resiliency of our business in today’s uncertain environment,” ResMed CEO Mick Farrell said in the news release. “Throughout our fis…

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