ResMed’s supply chain issues open door to new and old competitors
In an Interview with Third Bridge Forum, the specialist told us ResMed was currently producing approximately 65% of all CPAP machines. Although ResMed has been ramping up production to cope with increased demand, they said there were now “backups of maybe two months’ worth of CPAPs”, with a significant number of patients waiting to use them.
With medical professionals looking to urgently relieve their backlogs, the specialist said B3 Medical was a CPAP manufacturer “to watch”, having been “extremely aggressive” in manufacturing competitive equipment on par with Philips and ResMed. The specialist said it could potentially gain 5-6% market share over the next 3-5 months as ResMed continues to upscale production.
Continued supply chain shortages mean early expectations that Philips’ CPAP recall could cause an 80% market share swing towards ResMed were now unlikely, according to the specialist. Predictions it might take Philips 4-5 years to rebound are also unlikely in the specialist’s opinion, not only because of supply chain issues but also because of Philips’ reputation: “I think for them to get to some level of equilibrium with market share it may take 2-2.5 years. The thing about Philips is they’re known, they’re respected, the physician community is familiar with them.”
ResMed could “hold onto” the 5-7% market share it gains from Philips, but that it might face further competition from a resurgent Philips and a growing B3 Medical in the future.
To access all the human insights in Third Bridge Forum’s ResMed – supply chain issues & demand outlook for sleep & respiratory care devices Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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