ResMed (RMD) is a global leader in developing, manufacturing, and commercializing medical devices and cloud-based software applications for respiratory disorders. These disorders include sleep-disordered breathing, chronic obstructive pulmonary disease (or COPD), and neuromuscular disease. ResMed’s cloud-based health applications in tandem with its medical devices provide connected care to improve patient outcomes.
ResMed focuses on the sleep and related respiratory care markets, which the company believes are underpenetrated on a global basis. Its products include devices, diagnostic products, mask systems, headgear, dental devices, and cloud-based software informatics. Sales of these devices accounted for ~56.0%, 56.0%, and 58.0% of ResMed’s revenues in fiscal 2018,[1. fiscal 2018 ended June 30] fiscal 2017, and fiscal 2016, respectively.
According to ResMed (RMD), about 26.0% of adults aged 30–70 years—or about 46.0 million people in the United States—have some form of obstructive sleep apnea. Mild to severe sleep apnea affects more than 936.0 million people worldwide, and more than 424.0 million people have moderate to severe sleep apnea.
ResMed (RMD) generated revenues of $2.34 billion in fiscal 2018, compared with revenues of $2.07 billion in fiscal 2017. This increase was attributable to higher unit sales of ResMed’s devices, masks, and accessories. The increase was partially offset by lower selling prices. ResMed is expected to generate revenues of $2.56 billion and $2.8 billion, respectively, in fiscal 2019 and fiscal 2020.
ResMed’s gross profit increased from $1.2 billion in fiscal 2017 to $1.36 billion in fiscal 2018 due to manufacturing and procurement efficiencies. This represented an expansion in ResMed’s gross margins from 58.15% in fiscal 2017 to 58.21% in fiscal 2018.
We’ll take a look at ResMed’s operational performance in the next part.