NEW YORK & SAN DIEGO—ResMed, a digital health technologies company providing medical devices for people with sleep apnea, chronic obstructive pulmonary disease (COPD) and other chronic diseases, unveiled its 2030 strategy aiming to drive growth, profitability and shareholder returns at the 2024 Investor Day in New York City. Additionally, ResMed announced its five-year revenue and earnings growth outlook, which reflect ResMed’s plans to accelerate product and technology innovation, operations, commercial execution and financial strength. With the new strategy, ResMed aspires to help more than 500 million people worldwide achieve their full health potential in 2030.
“At ResMed, we are celebrating 35 years of growth and innovation with continued evolution, cutting-edge new products and an unwavering commitment to consumers, providers and shareholders,” said Mick Farrell, chairman and CEO of ResMed. “Today, more than 2.3 billion people suffer from major sleep health and breathing issues, the vast majority of which are undiagnosed. By building on our leadership in connected digital health, our 2030 strategy will further enable us to transform sleep health, breathing health and health tech at home through world-class products and digital solutions.”
2030 Strategy
ResMed aims to achieve its new financial and growth goals through the execution of its 2030 strategy across three pillars:
- Grow and differentiate ResMed’s core sleep apnea franchise, led by demand generation and demand capture: The 2030 strategy focuses on ResMed’s sleep apnea core, in order to make smaller, quieter, more comfortable and more connected products. ResMed will continue differentiating its technology with artificial intelligence/machine-learning to enhance therapy performance, consumer appeal and user experience. These commercial excellence and demand generation initiatives goals aim to drive more patients into ResMed’s funnel.
- Capitalize on ResMed’s market opportunity in broader sleep health and breathing health adjacencies: ResMed plans to capitalize on key macro trends, including the spotlight on sleep apnea due to pharmaceuticals and consumer tech. Additionally, ResMed’s experience in sleep health positions the company to address the sleep health market opportunity, including 860 million people who suffer from insomnia and 480 million people who suffer from COPD.
- Invest 7% of revenue into research and development, in order to invent, create and differentiate a digital ecosystem for health technology delivered at home: With a base of more than 28 million patients in its “AirView” platform and more than 8.3 million patients registered to its “myAir” platform, ResMed intends to integrate devices and data, enhance provider efficiency and enable more personalized care. The 2030 strategy initiatives hope to increase patients and build the ecosystem’s data advantage.
“We remain focused on delivering a more integrated and intelligent ResMed ecosystem, transforming the consumer and provider experience to offer better care, simplify the health journey and improve access to our therapies,” Farrell said. “As we grow our core sleep apnea market, we will also leverage our strong financial position and expertise in broader sleep health to expand into adjacent markets and accelerate the release of new products at an unprecedented velocity.”
The company’s five-year financial outlook includes a focus on high-single-digit revenue growth, as well as ensuring earnings growth are higher than revenue growth.
“Since our last Investor Day in 2021, we have delivered on our commitments, and this new outlook reinforces that ResMed is well positioned to maintain its track record of strong financial performance,” said Brett Sandercock, chief financial officer of ResMed. “Our financial strength and low capital requirements create robust cash generation, and our capital allocation strategy will continue to prioritize innovation through reinvestment in our core business, a disciplined and strategic approach to (mergers and acquisitions) and a balanced capital return policy. We are confident this approach will deliver significant value to shareholders as we execute our 2030 strategy.”
Implemented in 2023, ResMed’s 2030 operating model reorganized the company in an effort to ensure a product-led, customer-centric and brand-enhanced structure. The 2030 operating model focuses on ResMed’s goal of reaching consumers where they are and achieving the five-year financial outlook.
