Chatsworth, Calif.
Chad Therapeutics reported that sales of its home oxygen filling system increased by 64 percent in fiscal 2005 compared to the previous year. In its earnings report for the year ending March 31, the company said that it has been approached by several distributors regarding the Total 02 System and expects to finalize formal agreements during the next few months.
“Recent changes in home oxygen reimbursement are encouraging home care providers to evaluate their monthly operating costs more carefully and to seek more cost-effective ways to service their home oxygen patients,” said company President and CEO Earl Yager.
Chad also announced that it is preparing to enter the sleep-disorder market following what it said was a successful clinical trial of a new sleep apnea device. The company expects to make a decision this summer regarding its distribution options.
Chad's domestic sales of oxygen conservers increased 5 percent, a growth rate “restrained by increased pricing pressure in the domestic market” along with a “reduction in sales of conservers to a large customer,” according to a company statement.
Internationally, conserver sales increased 51 percent.
The company reported net earnings of $1.8 million, an increase from $1 million the previous year, and revenues of $24.3 million, an increase from $21.5 million.
