HME News is the monthly business newspaper for home medical equipment providers. This controlled circulation publication reaches 17,100 home medical equipment services providers, including traditional HME dealers & suppliers, hospital- and pharmacy-o
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■ ■ Matt Monaghan says the whole is greater than the sum of its parts at Invacare. See story next page. Invacare leans on subsidiaries. . . . . . . . . . . . . . . . . . . . . . . 1 ResMed integratese Inova, Brightree . . . . . . . . . . . . . . . . 20 Inogen says it will have 90% market access . . . . . . . . . . 20 Pride Mobility expands retail options . . . . . . . . . . . . . . . . 20 Vendors 20 hme news / june 2016 / www.hmenews.com Briefs Philips Respironics builds new distribution facility MURRYSVILLE, Pa. – Philips Respironics is working with a developer to build a new 260,000-square-foot distribution center in Westmoreland County, according to the Pittsburgh Business Times. Construction on the new facility started in February and is expected to be fnished in the second half of 2016. compass health Brands buys pain product CLEVELAND – Compass Health Brands has acquired the Strengthtape brand of kinesiol- ogy tape, along with other associated assets, from the privately held company Endevr of St. George, Utah. Strengthtape, the offcial kinesiology tape of the Ironman triathlon, is known for its long-lasting durability and ef- fectiveness on common injuries. harmar debuts new tagline SARASOTA, Fla. – Harmar has launched a new tagline, "Lifts for Life," to represent its mission of making lives better with its line of lifts. "This simple identifcation speaks to what Harmar's products do for people who are mobility chal- lenged," said David Baxter, vice president of marketing. "This change also helps Harmar's brand speak to the consumer." convaid, R82 combine sales efforts TORRANCE, Calif. – The sales and marketing teams at Convaid and R82 have been com- bined. Convaid sold to Etac AB in 2015. Etac offers products for the pediatric market through its R82 brand. Drive|DeVilbiss gets smart CHARLOTTESVILLE, Va. – Drive|DeVilbiss Health- care and WillowTree, a UX design and app development company, have launched a SmartLink App for the IntelliPAP 2 CPAP device. The app interfaces with the device wirelessly over Bluetooth, pulling data daily to keep track of patient progress. Resmed fles new claim SAN DIEGO – ResMed has fled new legal ac- tion with the United States International Trade Commission seeking to stop what it claims is patent infringement by Chinese manufacturer BMC Medical and its U.S. dis- tributor 3B Medical. ResMed claims that two of the manufacturer's fow generators infringe on two claims of ResMed's patent. short takes Universal Software Solutions has part- nered with IMCO Home Care to offer Health- care Data Management System to HME pro- viders...Responsive Respiratory has added M6 and E cylinder sizes to its selection of home flling cylinders...Invacare was an of- fcial supporter of the 2016 Invictus Games, May 8-12 in Orlando, Fla… PlayMaker CRM plans to nearly triple the number of employ- ees at its new Raleigh offce this year from fve to 14…Ian Whitehall has been appoint- ed chief sales offcer of SP Industries. ResMed begins integration Social climbing Pride Mobility elevates consumer mobility Inogen sweeps bidding Company acquired Inova, Brightree in less than three-month span I N O G E N s e e n e x t pa g e By Liz BeauLieu, editor SAN DIEGO – It's still early days for recent acquisitions to impact ResMed's fnancial results, but Inova Technologies helped to boost the company's revenues by 2% in the third quarter of fscal year 2016. ResMed reported $453.9 million in revenues for the third quarter compared to $422.5 million for the same period in 2015, a 9% increase on a constant currency basis. "We had two months of Inova included in the quar- ter," said Mick Farrell, presi- dent and CEO during a con- ference call on April 27. "We also had a full quarter of Curative, our acquisition in China. So when you combine the two months of Inova and three months of Curative, it probably contributed around 2% to global growth. So our 9% global growth was 7% By Liz BeauLieu, editor GOLETA, Calif. – Inogen has accepted contracts for respi- ratory products in 93 of the 117 competitive bidding areas as part of the Round 2 re-compete, the company says. Inogen achieved similar penetration in the original Round 2, says President and COO Scott Wilkinson. "We have looked at it from a market access standpoint and we, ultimately, will have roughly 90% market access through the Medicare pro- gram in both scenarios, so our position is pretty much unchanged," he said. As a result of the new payment amounts for the Round 2 re-compete, Ino- gen has adjusted its antici- pated total revenue head- wind to 3.5% to 4%, from 2.5% to 3.5%. The company says the new amounts repre- sent a 17.4% reduction, on average, for stationary oxy- gen concentrators, and an 11.3% reduction, on aver- age, for POCs. Inogen is holding firm, however, on its 2016 guid- ance of revenues of $187 million to $191 million; adjusted EBITDA of $37 million to $39 million; and net income of $12 million to $14 million. "The company believes its current guidance is still achievable because of the declining Medicare rental revenue as a percent of total By Liz BeauLieu, editor EXETER, Pa. – Pride Mobility Products has upped the ante among manufacturers of con- sumer power wheelchairs with the recent launch of its Jazzy Air. The Jazzy Air, which debuted at Medtrade Spring and won the top prize at Funder games the Doctors tV show on april 25 aired its inaugural "Funder games," featuring five healthcare startups with audience members voting on the new best product. the winner: URise products and its just launched standUp Walker. the walker is a stand- assist device combined with a modern take on a mobility walker. pictured: CeO Ken paulus with the Doctors. the event's retail product awards, features patent- pending technol- ogy that allows 10 inches of seat ele- vation at a driving speed of up to 3.5 mph. " W h e n y o u talk about what consumers are looking for in a power wheelchair, it's more social interaction and environmental access—that equals social mobil- ity," said Randy Walsh, vice presi- dent of Jazzy and Retail Mobility Sales. "Someone might need a power wheelchair, but what they want is social mobility. They want to go out for a walk. They want to go out to dinner. They want to function better in their vocation." Quantum Rehab, a Pride Mobility company, in February 2015 launched iLevel, a next- gen seat elevation technology for the Q6 Edge 2.0 complex power wheelchair base. The receptivity in the mar- ket to iLevel inspired Pride Mobility to develop a similar organic and 2% acquisition driven." ResMed closed on its acqui- sition of Inova, a manufactur- er of POCs, in late Janu- ary. It closed on Curative, a m a n u f a c - turer of med- ical devices f o r s l e e p - d i s o r d e r e d b r e a t h i n g a n d C O P D , in October. R e s M e d h a s a l s o b o u g h t B r i g h t r e e , a p r o v i d e r o f b u s i n e s s management and clinical software applications, but because that deal didn't close until early April, it didn't impact third quarter fnancial results. In the fourth quar- ter, however, Brightree will add $113 million in revenues and more than $43 million in EBITDA to ResMed's book of business right off the bat. "We haven't fully integrated our go-to-market (strategy), but we do have a 91-83-60 (day) plan and will be able to provide, probably over the coming four quarters, fur- ther and further integrations, including financial integra- tion, starting in Q4, with those numbers rolling in," Farrell said. For net income, ResMed reported $88.5 million for the third quarter compared to $91 million for the same period in 2015, a decrease of about 2.7%. For the Americas, ResMed reported $282.2 million in revenues for the quarter, a 12% increase. Net income was Hollingshead Mick Farrell j A z z Y a i R s e e n e x t pa g e R E S M E D s e e n e x t pa g e