History of RedMed and Developments for Sleep Apnea

History of RedMed and Developments for Sleep ApneaResMedResMed is a principal developer, producer and distributor of pioneering checkup equipment for the administration and handling of respiratory dis instals, with its major localise on obstructive balance apnea (OSA). It was started with a moto to commercialize a treatment for OSA in 1989. It has corporate offices in 26 countries distributing their range of merchandises in virtually 100 countries throughout the world.HistoryIn 1981 Colin Sullivan and his colleagues introduced their invention of continuous substantiative airway pressure (CPAP) for the treatment of obstructive sleep apnea (OSA). CPAP was a practical, effective, and steady-going treatment for the one thousand thousands of OSA victims around the world. Dr Peter Farrell who was the Vice-President of RD of Baxter Healthcargon and Director of Baxter Centre for checkup Research Pty Limited (BCMR) in early 1980s is an expert in bioengineering area. He sensed tremend ous business opportunities of CPAP when he take take Sullivan in an academic conference in 1986, and then CPAP treatment was commercialize by Peter Farrell and Colin Sullivan through BCMR. Three years later, Farrell planned to arrogate the rights of certain technology relating to CPAP treatment from BCMR and as a result, ResCare Holdings Limited, which had a $1.2 million registered capital, was registered in Sydney in August 1989.In order to experience a better victimization, order changed its registration place to Delaware, USA in 1994 and changed its stimulate to ResMed as the original name ResCare was already registered in USA. Through the CPAP technology, the companionship started gaining success in American medical market and got listed on the NASDAQ (1995) issue stock market, New York Stock Exchange and Australian Securities Exchange (1999). As a result of these listings, ResMed became the humongousgest phoner in the sleep disordered active (SDB) marketplace in lat e 1999.With the success in SDB marketplace, company gainful more attention to do research in newly relate areas and in 2000. Clinical research showed that untreated SDB was very likely a pivotal factor in some(prenominal) stroke and cardiovascular diseases. This decision jocked ResMed in conducting further research in stroke and congestive sum correspond failure (CHF). The novel outcome of this research has attracted Australian Technology swag for the company in biotechnology area in 2000. Eventually, the company was class-conscious number I in Medical Products Company according to Investors task Daily in 2001.Continuing installation, the company has released a series of updated products amongst 2003 and 2005. Bubble Mask Series 3 and Constant CPAP were released in 2003 and the historically significant product S8, which received Australian Design Award in 2006, was introduced in 2005. The extensive product nisus made company bring forth the largest corporation that foc manipulationd exclusively on providing therapies for improving the quality of sleep in late 2010.In order to adapt rapidly ever-changing world market, company made changes to its management structure by creating a new strategic business unit. It revised roles in the contemporary commercial, manufacturing, total and corporate staff sections in 2011. These measures improved the working efficiency and promoted the company to continue as a leader in SDB market.With the victory all everyplace the injunctions in Germany against patent infringing behaviours by APEX and BMC in 2013, ResMed finally dumbfound a global leader in SDB market and other respiratory disorders.1.1 Financial resultsIn fiscal year 2013 ended June 30 2013 (FY13), ResMed account record monetary results with an add-on in dismiss revenue to US$ 1,514.5 million, an step-up of 11% when compared to fiscal year 2012 (FY12). Gross addition change magnitude for FY13 to US$ 940.7 million, from US$ 820.7 million for FY1 2, an plus of US$ 119.9 million or 15%. ResMeds net income for FY13 was US$ 307.1 million or US$ 2.10 per diluted persona compared to net income of US$ 254.9 million or US$ 1.71 per diluted share for FY12.(http//www.resmed.com/us/en/consumer/news-and-information/news-releases/2013/resmed- posterior-ended-june-2013-financial-results.html)In more fresh quarterly financial result ended March 31 2014, net revenue for the quarter was US$ 397.8 million, a 4 percent improver over the quarter ended March 31, 2013. ResMeds Gross profit increased for the quarter to US$ 251.8 million, from US$ 239.4 million for the same quarter of brave out year, an increase of US$ 12.4 million or 5%. terminal income was US$ 90.0 million, an increase of 6 percent compared to the same quarter of last year. Diluted earnings per share for the quarter were US$ 0.63, an increase of 9 percent compared to the same quarter of last year.(http//www.resmed.com/us/en/consumer/news-and-information/news-releases/2014/ resmed-financial-results-quarter-ended-march-31-2014.html)graphical record 1.1 Income statement evolution of ResMed from 2008(Source from http//www.zonebourse.com)The graph shows ResMeds healthy financial egress in late(a) years and actively estimates a steady and consonant using of ResMed in the following several years.1.2 Share price on stock market (ASX)Graph 1.2 ResMeds share price sport on ASX(Data source from http//www.asx.com.au)The share price of ResMed on ASX fluctuated hauntly inside most recent one year, while it continues change magnitude from 2.50 to 5.50 since 2012. According to analysts report, the increase was majorly due toHuge potential in SDB market both patients and physicians are coming to realize high prevalence of SDB, and ResMed are expected to extend its foothold in the market of SDB treatment.Increased focus on supranational market In last quarter of FY14, revenue outside the Americas was $181.6 million, an increase of 8 percent over the prior years quarter, which represents ResMeds big success on international market. And in most recent years, europium witnessed ResMeds international outperformance.Strong emphasis on product development earlier in this fiscal, AirFit P10, latest nasal pillows system from ResMed, was introduced in line with its product innovation plan. The company also expects to launch two excess masks in the course of the remaining FY14.Strong return to shareholders ResMed continues rewarding its shareholders via share repurchase programs and dividends. During last quarter, the company repurchased 1.6 million shares at a apostrophize of $72.5 million, as part of its ongoing capital management program.(FreeZacksReport.pdf)(http//www.resmed.com/us/en/consumer/news-and-information/news-releases/2014/resmed-financial-results-quarter-ended-march-31-2014.html)1.3 Investment in RDResMed is committed to ongoing investing in RD and product enhancements. During FY13, they invested more or less US$120.1 million on r esearch and development activities, which represents approximately 8% of net revenues.(http//www.resmed.com/us/en/consumer/news-and-information/news-releases/2013/resmed-quarter-ended-june-2013-financial-results.html)Furthermore, in quarterly financial result ended March 31 2014, RD expenses of ResMed were US$31.4 million for the quarter, or 7.6% of revenue. RD expenses increased by 12% compared to the quarter ended June 30, 2012. Such RD investment was even favorably impacted by the depreciation of the Australian dollar sign against the U.S. Dollar.(http//www.resmed.com/us/en/consumer/news-and-information/news-releases/2014/resmed-financial-results-quarter-ended-march-31-2014.html)Graph 1.3 The change of ratio of ResMeds RD expenses to total operating expenses(Data source from http//www.resmed.com)Business modelResMed is regarded a leader company in developing, manufacturing, and distributing the medical device for treating sleep-disordered breathing (SDB) and other respiratory di sorders. In spite of this, ResMed is highly competed with various companies in its principal markets, the US and Europe. ResMeds fierce competitors whitethorn include Respironics, DeVilbiss, and Nellcor Puritan Bennett. ResMed relies on its four strategies beneath to compete with them.Continue Product Development and InnovationResMed believes that the important matched factors in all of the markets are product features, reliability and price, hence, ResMed continues product development and innovation. Since 1999, ResMed has started to develop the design of products and create additional accessories in oder to satisfy customers with the use of products. ResMed has not stopped making efforts on product development and innovation until now. Accordingly, approximately 12% of ResMeds employees are assigned to work on product development and innovation. In addition, ResMed recently spent about $AU 25 million to the University of Sydney with a strong corporate partnership. The Universit y of Sydney will help in the research of SDB-related chronic disease and bioinformatics.2) Expand Geographic front manOne of the strategies aims to develop market is expand geographic presence. ResMed markets its products in over 70 countries. ResMed sells their products by several approaches such as distribution network, withdraw sales force and independent manufacturers representatives. ResMed fills out its distribution network by acquisitions. For example, ResMed recently acquired Mediserv and Unimedis, which both are distributors of equipment for the treatment of SDB and respiratory disorders. These acquisitions help ResMed increase market opportunities and enhance the distribution of products in Europe. Similarly, ResMed had acquired some companies in the US to develop market and strengthen its combativeness in local. This may notify that ResMed expands the scope of market to increase the revenues by acquisitions. Despite ResMeds frequent actions of acquisitions, ResMed dec ides to acquire which company for marketing their products based on regional consciousness of SDB, physician referral patterns, consumer preferences and local reimbursement policies. Currently, ResMed has wholly owned subsidiaries in Australia, the UK, the US, Germany, France, Spain, Finland and Sweden.3) Increase populace and Clinic AwarenessResMed expects the SDB market will grow up by increasing the awareness of the SDB among the general population and physicals because sleep clinics, home health care dealer and the third party who sells the products to patients are the primary customers. In addition, ResMed tends to provide the knowledge and information of SDB to the interest groups or organisations such as the field Stroke Association, the American Heart Association and the National Sleep Foundation, which may help to spread the awareness of SDB in relation to other diseases and the wideness of SDB.4) Expand into New Clinical ApplicationsResMed is also seeking the potentia l applications of their technology. For example, the recent studies show that SDB has been confirmed as a cause of high relationship pressure or relevant disease and obstructive sleep apnea (OSA) is associated with both stroke and congestive heart failure. Followed by the more studies in medical journals, ResMed has more market opportunities of developing the new applications.Basically, ResMed pursues things to be simple and marry the low-risk strategy by staying at the areas of their expertise. ResMed is in a strong competitive market, in which the consolidation is a trend inducing ResMed implemented the strategy of acquisition to maintain their competitiveness and broaden the scope of market. In order to seek more market opportunities and enhance reputation, ResMed puts a great effort on product development and innovation as well as increasing public and clinic awareness of SDB.