ResMed Inc. (NYSE:RMD) Q2 2023 Earnings Call Transcript

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And I think if you look across the other 140 countries we sell into, every country is different. We’ve got to get the regulatory approval for AirSense 11 there. We’ve got to work our way through, but we’re going step-by-step on that journey. And so as I look at this excess patient demand, I made the comment there in my prep remarks, I think we will get to all of our customers’ demand before the end of this calendar year and that tells you our confidence in increased supply and our ability to meet that need, and we’re laser-focused on that humanitarian emergency of patients waiting too long for therapy and we just don’t want that you suffocate. This is a case of life and death; we’ve got the data to show that. We want your path to therapy to be expedited.

And in addition to that, the final thing I’ll say is that we are looking at our patient demand generation activities that have been on hold these last 18 months. And I’m looking at our models in Australia, New Zealand, Korea, Japan, Singapore, UK, and beyond where we have these omnichannel markets availability to contact consumers or sleep concern consumers directly and get them into the funnel. And here in the US, we have direct models and also our joint venture there with Verily and Primasun that we’ve done some really good demand gen tests and a number of cities just waiting for me to fire the starting gun for that team. And we’re getting very close to firing that starting gun. So, we have a smooth flow of — from excess patient demand to now patient demand generation to continue our growth trajectory.

Operator: Thank you. Our next question is coming from Mike Matson from Needham & Company. Your line is now live.

Mike Matson: Yes, thanks for taking my questions. I guess, Mick, I think you mentioned high flow therapy in your prepared remarks. I just wanted to get an update on kind of where things stand with commercializing that? And maybe talk about the — just the market opportunity there? Thanks.

Mick Farrell: Yes. Look, it’s a great question, Mike. And our long-term goals there in 2025, a number of those 250 million lives are going to change in 2025 will be patients with neuromuscular disease or chronic obstructive pulmonary disease. And two of those great therapies, high flow therapy in the home, I want to be very specific, it’s been used in the hospital during the pandemic. High flow therapy in the home, we see as a huge opportunity, probably 10 times the size of our ventilation market in COPD is available for home therapy, HFT therapy. And then Propeller, yes, early days and the pilots are going well. We’re integrated to the payer provider EHR systems, which gives us the credibility now to go from pilots to start to scale some payer providers, particularly in the US geography. But Rob, any further details on our work on HFT and cloud connected inhalers for Mike there?

Rob Douglas: Yes, Mike. We’re pretty excited about this. It’s a long-term project though, but as Mick said, we view this as a very large potential market, very significantly larger than some of our other respiratory care markets. And we believe that we’re running tests — we’re really focusing on its complementariness with home oxygen therapy that is you’ll get much better outcomes if you add this in. And we’re working hard on all of the market access and evidence generation programs to do that. Now, most of those programs are trying either RCTs or real-world evidence trials. So, we’re sort of in limited market release at the moment in specific markets where we’re making these claims. But as that evidence evolves and we generate it and take it to the — to payers and standard setting organizations, we see this is going to be a very strong market for us, but it is a multiyear project.

Operator: Thank you. Next question is coming from Craig Wong-Pan from RBC. Your line is now live.

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