ResMed hits supply chain constraints as it responds to competitor recall

MedTech News: ResMed saw a dramatic surge in demand for its sleep and respiratory care products after a recall by competitor Philips.

ResMed CEO Mick Farrell explained during ResMed’s Q4 earnings call that the company is running into supply chain problems as it seeks to respond.

“During the quarter, demand for ResMed’s Sleep and Respiratory Care devices surged dramatically after our competitors recall announcement, putting additional pressure on an already challenging environment for our industry’s supply chain.

“Global supply chain limitations including a shortage of electronic components, as well as ongoing freight constraints and costs are impacting our ability to respond to the unprecedented increase in demand for ResMed products. 

“Some major producers have suggested the chip and electronic components shortages could extend 12 or even 18 months. We are working incredibly closely with our global supply chain partners to ensure access to additional supply of the critical components that we need to further increase production of our medical devices.

ResMed will not be able to fill the entire supply gap that has been created by this situation around 7 weeks ago. 

“We understand this is a frustrating situation for all of our customer groups, including physicians, home medical equipment providers, payers, and most importantly the ultimate customer, the patient.

“It is a unique time in our industry, with steady recovery of patient flow after COVID-19 peaks in various countries. With these global supply chain constraints and with an unforeseen competitor recall, all occurring simultaneously. I want to be clear that through it all our priority will always be patients, doing our best to help those who need treatment for sleep apnea, chronic obstructive pulmonary disease and other respiratory diseases. Our goal is to ensure that patients get the therapy that they need and when they need it,” Mr Farrell added.