SAN DIEGO — Sleep sector giant ResMed has announced a reorganization and restructuring of management "that will strengthen our focus on the key drivers for ResMed's future growth, improve our ability to deliver in these areas and result in more effective investment initiatives," according to Chairman and CEO Peter C. Farrell, PhD.
Farrell, who founded ResMed in 1989, moved back into the CEO position in February on the departure of Kieran T. Gallahue, who left to become chairman and CEO of CareFusion, a medical technology company that focuses on the hospital sector.
Since then, Farrell said, he has reevaluated ResMed's strategy and organization.
"We are dedicated to providing innovative solutions that meet the needs of our sleep-disordered breathing patients and our distributors. We are also passionate about addressing the widespread ignorance which exists concerning the strong correlation between untreated SDB and such co-morbidities as cardiac disease, metabolic syndrome/type 2 diabetes, chronic obstructive pulmonary disease, perioperative risk, and occupational health and safety," Farrell said in a May 23 release.
"We have clinical data to show that treating SDB with nasal CPAP actually ameliorates and, in some cases, reverses the complications associated with these disease states, when SDB is present," he continued. "To this end, we have elected to reorganize certain business units and management responsibilities to more effectively align our activities with our strategic goals."
ResMed's new structure, which combines three existing business units into two and creates a new strategic business unit, repositions current senior executives without adding new hires, the company said. Here's a rundown from the release:
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The company is aligning its strategic business units to take advantage of scale and efficiency. Don Darkin will head a combination of the former sleep and patient interface organizations as president of the SDB strategic business unit, which is responsible for product development and marketing. Darkin was formerly senior vice president, patient interface strategic business unit.
Geoff Neilson becomes president of the newly created respiratory care strategic business unit, which will focus on COPD. He was formerly vice president, ventilation strategic business unit.
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A new strategic business unit called ResMed Ventures and Initiatives will focus on disease states related to SDB and other market opportunities. JC Kyrillos, formerly senior vice president, sales clinical and marketing-Americas, will become president of the unit. Initially the group will focus on SDB diagnostic and treatment opportunities in patients with concomitant cardiac disease and metabolic syndrome/type 2 diabetes. It will also focus on treating SDB in the perioperative care environment, and in the use of dental appliances to treat mild to moderate SDB.
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The company will continue operations with three geographic commercial regions in Asia Pacific, Europe and the Americas. Michael Farrell, formerly senior vice president, sleep strategic business unit, becomes president-Americas, responsible for Americas sales and commercial activities.
Four other corporate staff positions including CFO, CIO, chief administrative officer and chief strategy officer will report directly to the CEO, as will all the new positions.
Peter Farrell said the internal changes would help ensure the company's success. "In addition," he said, "with the initiative of the new business unit, ResMed Ventures and Initiatives, we will appropriately make good use of the cash on the balance sheet to invest in further growth opportunities that correlate with our key strategic initiatives."
This morning the company released its ResMed Sleep Assessment app, a new app for iPhone that lets users record themselves during sleep. The app combines a clinically validated questionnaire that quantifies a person's risk of sleep apnea with an overnight snore recorder that lets them compare their snoring to the snoring of an actual sleep apnea patient.
The app also includes a sleep lab locator, which helps users find a sleep center in their area, and a "Sounds to Sleep By" feature with recordings of soothing sounds to play while drifting off to sleep.
To download the Sleep Assessment app, go to www.resmedsleepassess.com.
