Respiratory Care Market Poised For Growth?

Picture credit: Tim Goedhart on Unsplash

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According to some analysts, the global respiratory-care device market is expected to be worth approximately $35 billion by 2026. One example of the growing market is sleep apnea, which in the United States alone has risen about 70% in the past 25 years, often requiring PAP devices to alleviate the condition.

Providers of respiratory devices, including home ventilator machines, positive airway pressure (PAP) devices, nebulizers and oxygen providers, are reportedly looking to capitalize on changing demographics amid an older global population that largely wants to remain in their homes and communities as they age. One respiratory device provider is Cincinnati-based Quipt Home Medical Corp. QIPT.

The company has reported growing rapidly with a number of recent acquisitions and is looking to effect more purchases to build its patient base and expand geographically. 

Quipt’s current geographic focus is mainly in the Midwest and southeastern and eastern states, operating in 76 locations across a total of 15 states as of fiscal 2021. That equates to more than 170,000 active patients with over 19,000 referring physicians.

Since its last quarterly results, Quipt acquired Indiana-based At Home Health Equipment Inc., adding over 15,000 active patients.

The company reported revenue of $29.5 million for the first quarter 2022 compared with $22.8 million for the corresponding quarter of 2021. 

To show the strength in demand for respiratory devices, the company said it had approximately 8,000 patients as of Dec. 31 needing to be set up for sleep devices. Its typical backlog is 1,000 patients.

The company remains optimistic some of that backlog will be cleared in the second half of 2022, generating a subsequent rise in revenue.

Major providers of respiratory care devices include Linde plc LIN and Apria Healthcare whose purchase by Owens & Minor Inc. OMI is expected to close in the first half of this year.

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