When Respironics President and CEO John Miclot is at a cocktail party, he has a question he always asks: How well do you sleep?
“Inevitably the conversation gathers momentum as people talk about their sleep challenges,” he says. “I can circle around to the same group a couple of hours later and they're still talking about the issues.”
The responses, he says, validate market research that 50 percent of Americans describe themselves as “problem sleepers.” Last year, the company announced plans to tap into the problem sleeper market and is working on a number of potential devices for common sleep issues such as snoring, insomnia and phase shift disorder.
“Other than CPAP, there are not any other devices to target sleep disorders,” he said. “There's not active innovation occurring other than in the pharmaceutical industry, [which is] a billion dollar market today.”
Despite the popularity of prescription drugs such as Ambien, not everyone wants to take medication, he notes. And those “pill dislikers,” as Miclot calls them, are some of the target customers for sleep devices. Another target group is the “solution seeker,” a self-treater who experiments with over-the-counter medications and positioning aids as solutions to their sleep problems.
Respironics sees opportunities for both prescription and retail devices in this new market, he says. “I ask people, ‘If we could come up with an elegant way to eliminate snoring, would you pay $100 so your bed partner doesn't snore anymore?’ So far I have go tten 100 percent ‘yes’ on that question.”
According to Miclot, the company is developing products that could help providers tap into these new markets, and expects to roll out a number of devices within the next year-and-a-half.
“When I talk to our customers, based on some of the changes in reimbursement they are looking for growth opportunities, and certainly sleep is one in which they can both enjoy growth and help patients,” he says. “It's a pretty important space for the smart home care company.”
