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

And the overlap of those is a really powerful tool for us to have sustainable long-term growth as we have the last 33.5 years. And so clearly, if we turn every dial to max, we wouldn’t be able to get off a constraint this year. We won’t turn all to max, but we will and we are starting to turn those dials and getting the programs up in running indifferent cities, different states, different geographies around the world as we start to get off-constraint. So, I won’t go into further detail than that to say that, Lyanne, yes, you’re digging in, it is more complex than just we get there. It’s we get there and then we start turning on the market growth rate as the market leader, which is our sort of our duty and our obligation and we’re going to do both.

We’re going to grow the market and grow our share and deliver for patients.

Operator: Thank you. Our final question today is coming from Steve Wheen, it’s a follow-up from Jarden. Please go ahead.

Steve Wheen: Yes, thanks for taking my question. This question is about the diagnosis rate in the US, in particular, for OSA. There has been some frustration to the ability to diagnose patients. So, I just wonder what you’re seeing from — during the quarter from an improvement on that front with regard to diagnosis?

Mick Farrell: Yes, Steve, thanks and thanks for coming for your second question at the end of the queue. It shows that the system works and you can get the second question in. It’s a good one. Our diagnosis rate in the US, obviously, impacted the start of COVID with all the labs being shut down and then we saw that big pivot and adoption of home sleep apnea testing and some great models from ResMed and many other players in the market to help physicians find ways to remotely screen, diagnose, treat, and manage sleep apnea patients. As we come out from pandemic to endemic in the US, we’ve definitely seen — I’d say, our data show that at least 50% of patients are going through home sleep apnea testing. And then of the other 50%, some of them do home sleep apnea test and then just a follow-up in a lab for titration and mask fit and so on.

And so really good adoption of home sleep apnea testing. It’s sort of related to our demand generation area that demand generation isn’t just going out there on social media and advertising and finding that customer acquisition cost and appropriate place well under lifetime value and getting them into the channel. It’s also working with the channel to understand where we have capacity, what cities, what geographies that we have. And as you know, Steve following us closely, we purchased a company called Ectosense, and their product called NightOwl. And I have one sitting on the desk right here. This thing is the size of my fingertip and it has the ability to have highly sensitive and specific screening and diagnosis of sleep apnea with reimbursement in a geography like the US, and we’re actually experimenting in Asia and Latin America and around the world on this.

And the technology is originally European, so hopefully, it gets adopted there, too. I love Ectosense, and I love home sleep apnea testing happening where it’s small, it’s quiet, it’s convenient, and its cloud connected similar to our therapeutics. And yes, so I think you’re going to see that diagnostic rate in the US pick up post-pandemic because people learned that telemedicine, digital health, remote screening, remote diagnostics work, and we can scale them. But it won’t just be here in the US. It might be pioneered, launched here, and scaled here. but it’s going to work in many other countries around the world. And I can tell you we’re really excited about partnerships with the physicians and the patients themselves to find their path to better sleep and better breathing.

Thanks for the question.