ResMed sets its sights on long-term growth with a newly unveiled 2030 vision.
Summary: ResMed has outlined its 2030 strategy at an Investor Day in New York City, emphasizing growth and innovation across sleep and breathing health markets. The company’s new plan includes accelerating product development, leveraging AI/ML to enhance therapies, and expanding into adjacent markets like insomnia and COPD. ResMed also shared its five-year financial outlook, targeting high-single-digit revenue growth and stronger earnings, while maintaining a focus on digital health solutions and operational excellence.
Key Takeaways:
- Growth Focused on Sleep Health and Adjacent Markets: ResMed plans to strengthen its core sleep apnea franchise and expand into broader sleep and breathing health areas, including insomnia and COPD.
- Emphasis on Digital Health Integration: The strategy includes investing in AI/ML and digital health technologies to enhance therapy performance and streamline patient care through its growing ecosystem.
- Ambitious Financial Targets: ResMed is targeting high-single-digit revenue growth and even higher earnings growth over the next five years.
ResMed unveiled its 2030 Strategy to drive growth, profitability, and shareholder returns at an Investor Day in New York City. ResMed also announced its five-year revenue and earnings growth outlook, reflecting ResMed’s plans to accelerate product and technology innovation, operational excellence, commercial execution, and financial strength.
Driven by the new strategy, ResMed expects 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,” says Mick Farrell, chairman and CEO of ResMed, in a release. “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.”
Farrell continues in a release, “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. 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.”
New Five-Year Financial Outlook
ResMed’s new five-year financial outlook includes:
- High-single-digit revenue growth
- Earnings growth 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,” says Brett Sandercock, chief financial officer of ResMed, in a release. “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 M&A, and a balanced capital return policy.”
2030 Strategy
ResMed aims to achieve its new financial goals through the execution of 2030 strategy across three pillars to drive growth:
- Grow and differentiate ResMed’s core sleep apnea franchise, led by demand generation and demand capture: The 2030 strategy is underpinned by a focus on ResMed’s sleep apnea core. ResMed will continue differentiating its technology with AI/ML to drive enhanced therapy performance, consumer appeal, and user experience. New commercial excellence and demand generation initiatives will aim to drive more patients into ResMed’s funnel.
- Capitalize on ResMed’s market opportunity and brand advantage in broader sleep health and breathing health adjacencies: ResMed’s evolution is designed to capitalize on key macro trends, including the enhanced spotlight on sleep apnea due to pharmaceuticals and consumer tech. Additionally, ResMed’s strong brand and expertise in sleep health position the company to address the large, untapped sleep health market opportunity, including 860 million people with insomnia and 480 million people with COPD.
- Invest 7% of revenue into R&D to invent, create, and differentiate a fully integrated digital ecosystem for health technology delivered at home: With a large installed base of more than 28 million patients in its AirView platform—and more than 8.3 million patients registered to the myAir platform—ResMed integrates devices and data to enhance provider efficiency and enable more personalized care, according to a release from the company. As ResMed’s 2030 strategy initiatives aim to drive more patients to its funnel, the ecosystem will further build its data advantage.
Implemented in 2023, ResMed’s 2030 operating model reorganized the company to ensure it remains product-led, customer-centric, and brand-enhanced. The 2030 operating model further accelerates ResMed’s ability to reach consumers where they are, achieve the five-year financial outlook, and unlock value, according to a release from the company.
