The Philips respiratory machine recall is a no-win situation for patients and doctors. But for the medical device giant’s longtime rivals and new competitors, business is looking up.
“We think it will be difficult for Philips to regain all the share that they had,” said Margaret Kaczor, an analyst with William Blair who follows ResMed among other companies. “This is an advantage for ResMed to the extent they can keep the share that they’ve gained.”
Philips and ResMed have historically been neck-and-neck in the sleep tech market, together accounting for over 30% of the global market share of devices to treat sleep apnea. But since Philips was forced to recall its CPAP and BiPAP machines in June 2021, amid widespread reports of problems as the soundproofing foam degraded and sickened patients, ResMed has seen a windfall. The San Diego-based company’s revenue reached a new quarterly-high of $1.03 billion for the second quarter of fiscal year 2023.
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