Invacare Reports Respiratory Growth
Invacare Corp, Elyria, Ohio, can add two more products to its North American respiratory offerings—which sold strongly in the first quarter of this year, according to a recent company report. The US Food and Drug Administration has approved Invacare’s Polaris™ EX™ continuous positive airway pressure (CPAP) with SoftX™ technology and the Invacare Polaris EX heated humidifier.
The Polaris EX CPAP features SoftX, an exhalation unloading feature designed to allow CPAP patients to breathe more easily upon exhalation. The heated humidifier helps eliminate dry nose and throat discomfort and reduce nasal swelling. It attaches to the front of the Polaris EX CPAP and is not compatible with any other CPAP flow generator.
In addition to a 38% growth in respiratory product sales in the first quarter, the company reported an overall net earnings increase of 16% to $14.2 million compared to $12.3 million during the first quarter of 2003. Invacare attributed its respiratory product growth to sales of its HomeFill™ oxygen system.
While North American sales of the company’s standard products decreased by 11% during the first quarter, sales of rehabilitation products increased 22%, with acquisitions accounting for 12% of that increase.
Invacare attributed the slower sales of consumer power products to tightening of power wheelchair eligibility rules by the Centers for Medicare and Medicaid Services, but reports that those deflated sales were more than offset by increased sales of custom power products led by the Storm Series® TDX™ power wheelchair.
In 2004, Invacare plans to introduce 40 products and expects net sales to increase between 12% and 14%.
| HME Insider Oxygen therapy device users do not want their lives hindered by their oxygen system. Over the years, manufacturers have accommodated consumers with smaller, lighter systems that allow them to control their own oxygen supply, says Erika Laskey, vice president of sales and marketing at CHAD Therapeutics Inc, Chatsworth, Calif. Now, she says, even more options are available. Dealer/Provider spoke with Laskey about the company’s latest advancement in respiratory care. Q What do consumers want in an oxygen therapy device and why? A There are really three types of consumers that impact the oxygen therapy device market: patients, physicians, and home care providers. At CHAD, we believe that our products should meet the needs of all three consumer sectors, and as a result, we strive to develop technological advancements that will improve the therapeutic benefits of oxygen therapy. In this way, the value of respiratory therapy in the home care sector will continue to advance and ultimately lead to longer and more fulfilling lives for our oxygen-dependent patients. Q What is the greatest challenge in providing oxygen therapy? A As a respiratory products manufacturer, our challenge is to produce high-quality products that incorporate cutting-edge technology at cost-effective prices. At CHAD, we are empowered by this challenge, and through the innovative efforts of our team, we will continue to meet it head on. Q How does CHAD’s new product address those issues? A We believe that the Sage* device represents a revolutionary advancement in the “science” of providing ambulatory oxygen. We have not seen any tangible progress in the therapeutic capabilities of ambulatory oxygen since CHAD invented the first oxygen-conserving device more than 20 years ago. Through the years, respiratory product manufacturers have been able to reduce the size and weight of portable systems, as well as provide patients with the ability to control their own supply of oxygen (as with CHAD’s Total O2® delivery system), but these enhancements never addressed how to improve the therapeutic benefits of oxygen for users. The Sage device has the ability to properly oxygenate patients at rest and activity by allowing a provider to specify both types of flow rates. The gold standard oxygen prescription of 2 L/min has now become obsolete. In the past, physicians chose 2 L/min as the prescription level because it was the best compromise setting that addressed patients’ needs for both rest and activity. With the advent of the SAGE device, there is no longer a need to compromise. Q How do you see the respiratory/oxygen therapy market shifting? A Our industry is in the beginning phases of a paradigm shift with respect to how we will care for patients going forward and still remain a viable and healthy sector from a business perspective. Due to the numerous issues surrounding the recent Medicare legislation, home care providers are increasingly more interested in products that drive their cost of providing service down, as opposed to just buying products based on an acquisition price. CHAD is well positioned to help our customers during this process by providing products like the Total O2 delivery system and the Sage device, which are cost-effective and, most important, deliver superior patient care. |
TracMed Provides e-CMN Service to The MED Group
Members of The Med Group, based in Lubbock, Tex, may now begin transmitting electronic certificates of medical necessity (e-CMNs) using Trac Medical Solutions’ CareCert™. The arrangement comes as a result of a MED Group agreement with Schenectady, NY-based Trac Medical Solutions Inc (TracMed), a subsidiary of AuthentiDate Holding Corp, to purchase blocks of transactions for its members to use for the processing of e-CMNs and other written orders.
Financial terms of the deal were not disclosed. However, TracMed will generate additional revenue through monthly per-location fees paid by MED Group members using the CareCert e-CMN platform.
The MED Group agreement comes on the heels of similar arrangements with the American Association for Homecare in February and Apria Healthcare Group Inc in March. The CareCert software is available immediately, and in a few months, users will be able to easily convert to an upgraded version of the software, according to TracMed.
Sunrise Medical Reaches Earnings Milestone
Sunrise Medical, Longmont, Colo, recently exceeded the half billion-dollar mark in global electronic transactions for its customers in North America and Europe. The electronics tools Sunrise Medical offers for its global customers include the company’s business-to-business Web site www.sunrisemedical.com, electronic data interchange, system-to-system integration using B-Connected software, XML solutions, and a retail dealer Web site through a third-party hosting company specializing in the HME industry.
Companies Unite To Offer Oximetry Qualifying Software
Oximetry Co LLC, a Birmingham, Mich-based, Medicare-approved, independent diagnostic testing facility, has teamed with The Letco Companies of Decatur, Ala, to release Medicare-approved software designed to expedite the oximetry testing of Medicare-eligible beneficiaries. Users can process oximetry tests live over a secure Internet connection using a personal digital assistant.
“In doing so, the DME community can use this software to ‘qualify’ a beneficiary literally in minutes after completion of the test as opposed to the industry average of weeks or even months,” says Robert W. Rudowski, CRT, CEO/president of Oximetry Co. Called Power Ox, the software is distributed exclusively by The Letco Companies.
ResMed Makes Gains in New Year
In April, ResMed Inc, Poway, Calif, reported increased revenues and income results for the the quarter and 9 months ended March 31, 2004.
Compared to the same quarter last year, revenue increased 32% to $91.3 million during the quarter. For the 9 months ended March 31, 2004, revenues jumped 28% to $246.4 million compared to the 9 months ended March 31, 2003.
Income from operations and net income for the March 31, 2004, quarter increased to $22.5 million and $15.0 million respectively, an increase of 31% and 23%.
Net income for the 9 months ended March 31, 2004, was $41.4 million or $1.18 per share, compared with net income of $32.2 million or $0.94 per share for the same period in fiscal 2003. Net income increased by 29% over the prior year period.
“We continue to make progress in addressing those comorbidites where there is a high prevalence
of sleep-disordered breathing, particularly in the cardiovascular space,” says Peter C. Farrell, PhD, chairman and CEO. “During the quarter, we again cosponsored, with Guidant Corporation and MedCath Corp, a satellite symposium on sleep-disordered breathing and cardiac disease during the annual American College of Cardiology’s annual meeting.”
| In Brief  Earl L. Yager
• Worldwide Mobility now offers a 36-month warranty on its lift products. The warranty applies to all fabricated parts, motors, springs, switches, straps, nuts, and bolts. The warranty is also transferable to other end users when the lift is properly reinstalled by a certified Worldwide Mobility Products dealer. • Harmar Mobility, Sarasota, Fla, recently unveiled a 3-year warranty policy on all its lift and ramp products. The warranty, which covers every single part, can be automatically transferred from one owner to the next during those 3 years. • Tara Morris of Respiratory Distributors Inc (RDI), Foley, Ala, was promoted to vice president of sales in April. Morris has worked with the company for the past 4 years as a national sales representative for inside and outside sales. RDI was recently acquired by Sun Capital Partners Inc, a private investment firm based in Boca Raton, Fla. • Vantage Mobility International (VMI), Phoenix, a provider of vehicle accessibility products, has promoted several key executives. Former VMI CEO Mitch Vance has been appointed chairman of the board. VMI President Doug Eaton is now president and CEO. Mark Roberts has been promoted to vice president, sales and marketing. • In April, Earl L. Yager was named president and CEO of CHAD Therapeutics Inc, Chatsworth, Calif. Formerly president, CFO, and secretary of the company, Yager succeeds Thomas E. Jones, who had been CEO since 1998 and who will remain as chairman of the board. Stepping into the CFO position is Tracy Kern, cost accounting manager since joining CHAD in January 2003. • Altimate Medical Inc, Morton, Minn, recently hired Gabriel Routh as manager of product development. Routh’s responsibilities include designing and testing new products based on research and feedback from the market. |
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