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

Rob, what did I miss there on David’s question?

Rob Douglas: The only other thing is, David, it’s been really important for us to be able to supply those two platforms. It’s been a great thing for us to have sort of a double. Basically, we’ve got so much extra capability and capacity because we’ve got two platform lines designed for the market.

Operator: Thank you. Next question is coming from Dan Hurren from MST Macquarie — I’m sorry Marquee. Your line is now live.

Dan Hurren: Hi, good morning everyone. Thanks for taking the question. Look, it’s pretty clear that a lot of the growth is now coming from products that have been reengineered and didn’t really even exist in their current form a little while ago. So, — and we’ve seen AirSense 10 connected as you’re talking about of parts and alternate supplier and so forth. But we’ve also seen some early regulatory approvals for an AirSense 11 with apparently different communication chipset. Is there any reason why that product couldn’t launch within the next few months as you’ve seen roughly the same time line between approval something like the AirSense 10 connected?

Mick Farrell: Yes. Thanks Dan. And clearly, you’re very diligent looking at FDA and different regulatory approvals around the world. Look, what I’ll say to this is that the AirSense 10 Card-to-Cloud was a reengineered re-pivoted device, absolutely. And the AirSense 10 fully connected, we did rejig the comms chip to get one that was less supply chain constraints. So, those two are reengineering back in the line. We didn’t reengineer the AirSense 11 that’s selling right now. But of course, there will be variance. This is a long-term platform. This platform, the AirSense 11 is going to do CPAP, APAP, bi-level, all sorts of amazing therapy models. If you even look at the work that we’re doing on the Lumis HFT device that we talked about earlier in the Q&A and during my prep remarks, that’s on a platform of the AirSense 10 and obviously, AirSense 11 will become the platform of note for us over the coming years.

But we don’t go into details of our future product pipeline. So, thanks for the question. But look, I can tell you, those three products in the market are number one, two, and three and as you saw this quarter, they’re selling well, and we expect them to continue to.

Operator: Thank you. Next question is from Lyanne Harrison from Bank of America. Your line is now live.

Lyanne Harrison: Good morning all. I might just come back to that full customer demand comment by the end of calendar 2023. Mick, is that in relation to just the new starts? Or do you also expect that you’ll meet the demand for the backlog of REPAP as well that we’ve had over the last few years?

Mick Farrell: Yes, Lyanne, you’re getting to some of the complexities behind that. Look, our goal is to get off the supply constraint during this calendar and we know we can get there. We won’t get there if we turn on every single knob that we have for demand generation and REPAP generation around the world. And so we will be turning those dials, if you like, for demand generation and REPAP generation through our customers and directly as we get supply improving country-by-country. And so yes, I think we can get to all customer demand if we do no change faster, but our goal is to take care of not just the patients who are currently in the pipeline, but also the 80% — 90% in many countries who are undiagnosed and untreated. And so our mission is to do that and it’s aligned with altruism but also our profit motive.