ResMed shortage of critical CPAP components falls short of demand
While many individuals suffering from sleep apnea have lost their respirator devices to a recall from Phillips, ResMed’s solutions to the CPAP problem will be arriving later in 2022 and early 2023.
ResMed, a CPAP device manufacturer and rival to Philips, posted a 12% revenue increase in their last quarter. While ResMed is seeing soaring profits, uncontrolled variables like supply chain delays mean there is a limit to how much success they can expect.
By the end of the recall, ResMed is expecting to capture only 10% of the market share from Philips. Analysts are also expecting ResMed’s growth to slow in 2023 once Philips makes its comeback as a competitor in the market.
Despite this, ResMed expects the fiscal 2022 year to end on a high note for them, likely bringing in up to $350 million in revenue by June. What this means for some CPAP device users is better access to quality ResMed medical devices.
However, the lack of critical components for CPAP machine production and post-COVID breakdowns in the supply chain are causing a critical obstacle in the way of ResMed’s device production.
ResMed is expecting that more components for their CPAP devices will be available during the second half of 2022. This is due in large part to the company re-engineering its supply chains as well as their Airsense 10 devices. ResMed released their newest device, the Airsense 11 CPAP machine in August 2021.
The CEO of ResMed, Micheal J. Farrell has also suggested a number of situations where Philips makes a comeback to the market as soon as this fall, or potentially as late as March of 2023. However, Ferrell did not seem concerned about the prospect of Philips returning, noting that the increase in supply when they return will ultimately help those affected with sleep apnea.