ResMed Looks to Replace Philips Atop Sleep Apnea Market

Following speculation last year that the widespread recall of Philips’ ventilators and CPAP machines would create some much needed space for sleep apnea company competitor ResMed, the predicted switch-up is now coming to fruition. Indeed, ResMed has shown 12% growth over its 2021 revenues, reporting $3.58 billion in profits for its fiscal year ending on June 30. It will be crucial going forward, though, that the fledgling company is able to facilitate a significant ramping up of its manufacturing capacity for CPAP machines in order to meet this greater demand.

Third Bridge analyst George Congdon sounded off on the matter with an optimistic prognostication: "If ResMed can increase capacity, the opportunity is quite significant," he said. "According to our industry expert interviews, a 10% market share shift is ambitious, but not impossible for a strategically savvy and efficiently run corporation such as ResMed."

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Philips, for its part, is not to be counted out quite yet, and expects to be back at its pre-recall level of sales by 2025. It will, however, have to bank on ResMed not completely capitalizing on this grand opportunity to fill its spot. Supply-chain challenges in both air and sea freight have reduced production to a snail’s pace in many of the company’s manufacturing facilities; ResMed Chief Executive Officer Michael Farrell has said that focusing on shoring up flow of components from existing parts suppliers is the first step in a five pronged plan to solve its supply issues.