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ResMed's CEO Discusses Q3 2012 Results - Earnings Call Transcript

Stocks in this article: RMD

As we've been highlighting in the last few quarters, another big reason we continue to see strong growth in the Mask category, other than the continued introduction of outstanding products, is that there is excellent business in the resupply replenishment to the existing patient base. Our global growth in Flow Generators this quarter was primarily driven by our high-end devices, which are now all on the S9 device platform. Strong sales reflect the benefits of having these products configured on the small but more appealing S9 platform. In the Americas, the S9 VPAP bilevel range is also regaining market share because of its excellent quality algorithms and also the performance that we get with those algorithms. The bilevels are providing strong value proposition for both HMEs and positions. Growth in the basic Flow Generator segment is still problematic and, partially, this is driven by the positive mix shift to APAP or our AutoSet from basic CPAP. And this is primarily due to the ongoing growth of home sleep testing. Europe continues to be challenging due to difficult macroeconomic environment there. Although sales were relatively strong in Germany and the U.K. Although the European economic climate remains somewhat muted bilevels, AutoSets and Stellar Stellar products all continue to do well.

We also just announced the release of our new patient compliance management solution called EasyCare Online. This innovative new tool used by sleep labs home medical equipment and DMEs and other healthcare providers aggregates usage and efficacy data from sleep-disordered breathing, obviously patient's on CPAP therapy, with simply a single click. Simple to use while saving time and money. The EasyCare Online employs a secure cloud-based system that provides compliance data that can differentiate our customers and is critical in today's environment.

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