ResMed Aiming to Reach 500 Million Breathing Health Patients by 2030
- ResMed aims to impact global health by helping over 500 million people improve their sleep and breathing health by 2030, leveraging its connected digital health leadership for growth and profitability.
- The 2030 strategy includes enhancing ResMed's core sleep apnea offerings, expanding into broader breathing health markets, and investing 7% of revenue in R&D to create a fully integrated digital health ecosystem.
- ResMed's financial outlook includes ambitious growth targets, driven by innovation, operational excellence, and a reorganized operating model to better serve consumers and expand into untapped markets.
Join Our Newsletter
Get the latest news, updates, and exclusive content delivered straight to your inbox.
In a significant move aimed at transforming the sleep health and breathing health landscape, ResMed Inc. (NYSE: RMD) has unveiled its ambitious 2030 strategy. The medical device maker, renowned for its innovative solutions in treating sleep apnea and chronic obstructive pulmonary disease (COPD), has set its sights on helping more than 500 million people worldwide achieve their full health potential by 2030. This bold initiative underscores ResMed's commitment to leveraging its leadership in connected digital health to drive growth, profitability, and shareholder returns.
A New Era in Sleep Health Technology
ResMed, based in San Diego, has been at the forefront of sleep health technology for over three decades. With a legacy of innovation, the company is now poised to escalate its impact on global health. At the heart of its 2030 strategy is the continued evolution of its core sleep apnea franchise. ResMed aims to produce smaller, quieter, and more comfortable products that are seamlessly integrated into a more intelligent ecosystem. The company will leverage artificial intelligence (AI) and machine learning (ML) to enhance therapy performance, consumer appeal, and user experience.
Pillars of ResMed’s 2030 Strategy
ResMed’s 2030 strategy is structured around three key pillars:
-
Grow and Differentiate ResMed’s Core Sleep Apnea Franchise
- Demand Generation and Capture: ResMed will focus on making smaller, quieter, and more connected products. This includes introducing new commercial excellence and demand generation initiatives to drive more patients into the company’s funnel. The goal is to serve these patients with a robust roadmap of new products, such as the AirTouch N30i next-generation CPAP mask.
-
Capitalize on ResMed’s Market Opportunity in Broader Sleep Health and Breathing Health Adjacencies
- Addressing Untapped Markets: ResMed plans to capitalize on key macro trends, including the enhanced spotlight on sleep apnea due to pharmaceuticals and consumer tech. The company’s strong brand and expertise in sleep health position it well to address the large, untapped sleep health market opportunity. This includes addressing 860 million people who suffer from insomnia and 480 million people who suffer from COPD.
-
Invest 7% of Revenue in R&D
- Creating a Fully Integrated Digital Ecosystem: ResMed intends to invest 7% of its revenue into research and development (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 on its AirView platform and over 8.3 million patients registered to its myAir platform, ResMed aims to integrate devices and data to enhance provider efficiency and enable more personalized care.
Financial Outlook and Growth Projections
ResMed’s five-year financial outlook is ambitious, projecting high-single-digit revenue growth and earnings growth exceeding revenue growth. This strategic approach reflects the company’s plans to accelerate product and technology innovation, operational excellence, commercial execution, and financial strength. ResMed remains committed to delivering a more integrated and intelligent ecosystem, transforming the consumer and provider experience to offer better care, simplify the health journey, and improve access to its therapies.
Implementing the 2030 Operating Model
To ensure the successful execution of its 2030 strategy, ResMed reorganized its operating model in 2023. This reorganization aimed to maintain a product-led, customer-centric, and brand-enhanced structure. The new model enables ResMed to reach consumers where they are and achieve the five-year financial outlook. This approach will unlock value by leveraging ResMed’s 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.
Impact on Global Health
ResMed’s initiative to help over 500 million people achieve their full health potential by 2030 is a significant step towards addressing global health challenges. Today, more than 2.3 billion people suffer from major sleep health and breathing issues, the vast majority of which remain undiagnosed. By building on its leadership in connected digital health, ResMed’s 2030 strategy will further enable it to transform sleep health, breathing health, and health tech at home through world-class products and digital solutions.
Addressing the Sleep Health Crisis
The sleep health crisis is one of the most pressing global health issues. Sleep apnea alone affects hundreds of millions worldwide, leading to various complications including heart disease, diabetes, and cognitive impairment. ResMed’s focus on addressing this crisis through innovative products and integrated digital solutions is crucial. The company’s commitment to making sleep health technology more accessible and user-friendly will undoubtedly lead to better health outcomes for millions.
Conclusion
ResMed’s 2030 strategy is a testament to the company’s dedication to improving global health. By focusing on its core sleep apnea franchise while expanding into broader sleep health and breathing health adjacencies, ResMed is poised to make a substantial impact. The investment in R&D and the commitment to creating a fully integrated digital ecosystem underscore the company’s vision for a healthier future. As ResMed continues to innovate and expand its reach, it is clear that the company will play a pivotal role in transforming the landscape of sleep health technology.
