This Clinical Respiratory Company Has Been Easing the Burden on the Healthcare System During the Pandemic — It's Looking to Continue to Do So Beyond

Photo by Matt Koffel on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

For Quipt Home Medical QIPT, a specializer in ventilator equipment and aids, the COVID-19 pandemic presented a significant chance to bring additional value to society. With a critical shortage of ventilators and hospitals experiencing a surge of patients, the company reports that its home ventilation and oxygen therapy solutions provided many with an outlet for essential health products and services.

In tandem with pharmaceutical companies such as Pfizer Inc. PFE and hospital providers like Community Health Systems Inc. CYH, companies like Quipt round out the home-based side of medical devices and care.

With the onset of the pandemic, market intelligence on the prevalence of respiratory issues within the population was likely conflated. Nevertheless, studies conducted before the pandemic indicate that respiratory issues were existent, and growing, way before anyone had ever heard of COVID-19. 

This trend is particularly true for sleep apnea and oxygen dependency. According to Quipt, the number of Americans suffering from the former, for example, has increased approximately 70% over the past 25 years. Additionally, the use of oxygen among patients over 65 continues to increase, especially among patients with chronic obstructive pulmonary disease (COPD), who have shown an increase of 15% in the last 5 years. 

Demand for Respiratory Products is Likely to Stay

Below is a quick overview of Quipt’s financial performance for 2021, courtesy of the company’s investor presentation and recent press release. 

• Quipt’s revenue profile is 75% recurring revenue and 25% sales. Pap ventilation therapy and oxygen therapy were the highest performers. 
• As of 2022, Quipt is trading at 6.2 times its Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA)
• Quipt anticipates $2.9 million of adjusted EBITDA in 2021. 
• Quipt’s acquisition of an Indiana-based company adds 15,000 new active patients to its roster. 

“We see a tremendous number of synergies and believe our strong sleep re-supply business presents us with significant upside as we deploy our technology therein,” said Greg Crawford, Chairman and CEO of Quipt. “We are also excited to enter the hospice segment, with over 30% of At Home Health Equipment’s revenue coming from this high growth area and we will strategically work to build this vertical out over the course of 2022.”

For more on Quipt, click here. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.