Following an impressive third quarter of fiscal 2012,
) is leaving no stone unturned to expand its operations further.
The company launched its first product in Japan named Omron Sleep
Design HSL-101, a wireless sleep monitoring device.
This product was launched by ResMed's recently acquired company
BiancaMed Ltd.'s partner Omron Healthcare and was developed using
BiancaMed technology. The new device forms a part of the "All for
Healthcare" strategy of Ormon, which seeks to connect to health
care support services in Japan by offering wireless and non-contact
Considering the huge and underpenetrated international Home
Sleep Testing market, ResMed is emphasizing on strategic
initiatives to penetrate further in the international arena. While
Japan already accounts for half of the Asia-Pacific sales, we
believe that ResMed's new product launch in the region will enhance
its presence going forward. Also, the company considers
Germany and UK to emerge as its key markets and expects future
growth from its restructuring efforts in these countries.
As a part of its global expansion strategy, earlier in 2011,
ResMed acquired Irish medical technology company BiancaMed.
BiancaMed primarily manufactures and distributes non-contact
devices for monitoring sleep and breathing. The company's leading
product SleepMinder measures sleep and respiration with improved
biometric software. The company's proprietary technology motion
sensor detects respiration and movement without physical
Again in the same year, ResMed acquired Germany-based Grundler
Medical GmbH. Grundler develops innovative medical humidification
products that fit a wide range of ventilators from neonatal and
pediatric to non-invasive pressure support and the ones used in
intensive care unit. The company expects this deal to generate
incremental revenue as it steps into a new market segment.
The company also entered into a 5-year exclusive distribution
thus providing the latter with the exclusive right to distribute
the Stellar 100 and 150 non-invasive ventilators and their related
accessories in the institutional healthcare market.
Based on a favorable product mix and growing demand in the
sleep-disorder breathing market, ResMed reported 18% year-over-year
increase in revenues in Americas while outside Americas, revenues
increased 4% (up 7% at Constant Exchange Rate) in the third quarter
of fiscal 2012. Even amidst the challenging macroeconomic scenario
in Europe with disappointing performance in France due to a 6%
reimbursement cut, the increase in international revenues is
ResMed is one of the leading players in the generators, masks,
and related accessories market that are used for the treatment of
obstructive sleep apnea and related respiratory disorders. The
company is focused on medical equipment for the diagnosis and
treatment of sleep-disordered breathing. Besides, the industry is
benefiting from an aging population and an inclination toward
availing medical care away from hospitals. The company currently
retains a Zacks #1 Rank, which translates into a short-term Strong
Buy rating. Also, we have a long-term 'Outperform' recommendation
on the stock.
CAREFUSION CORP (CFN): Free Stock Analysis
RESMED INC (RMD): Free Stock Analysis Report
To read this article on Zacks.com click here.