- Australia’s medical devices and equipment industry is a mature one. The industry has massive potential as a significant chunk of medical devices is imported from abroad, primarily the US.
- The Australian medical technology industry includes medical devices players, companies involved in developing diagnostics and medical imaging equipment.
- Key players in the medical devices space that have outshone their peers in the past year include SomnoMed, EMvision Medical Devices, and Resmed.
The Australian medical device market is mature with a well-formed regulatory system. The industry boasts of prominent players like Cochlear Limited and ResMed Inc. However, few market participants seem to be aware that these players are global leaders in the hearing aids space and sleep apnoea pumps and masks space. Besides, there are several medical device players on the ASX developing their respective product pipelines aggressively.
The industry holds massive potential in Australia. According to the International Trade Administration’s report in February 2021, nearly 80% of devices and diagnostics demand is met by imports.
With this backdrop, let us discuss four ASX medical device players with excellent performance in the last year – SomnoMed, EMvision, Resmed, and Cochlear:
SomnoMed Limited (ASX:SOM)
ASX-listed healthcare company SomnoMed is the world’s leading oral appliance provider for the treatment of sleep apnea. The Company offers treatment solutions for breathing disorders related to sleep, including obstructive sleep apnea (OSA), snoring as well as bruxism.
On 27 July 2021, SomnoMed revealed its quarterly (Q4) results for the period that ended on 30 June 2021. The Company recorded strong revenue growth during the period, and this quarter was the strongest for the year that provides momentum into FY22.
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In the June quarter, the Company reported revenue at AU$16.2 million, up 91% compared to Q4 FY20. Furthermore, the Company also notified that it is well-positioned to benefit as the market normalises in the upcoming quarters.
Commenting on the June quarter results, Neil Verdal-Austin, Managing Director of SomnoMed, said-
EMvision Medical Devices Ltd (ASX:EMV)
ASX-listed medical device player EMvision Medical Devices is focused on the development and commercialisation of portable medical imaging technology.
On 20 July 2021, the Company provided an update on the build of its first-generation device. EMvision updated that the assembly of the device is on track, with the first device build to be completed next month.
This first-generation device is EMvision’s first model targeted for use in emergency departments, stroke and neurology wards, intensive care units (ICUs), and angiogram suites.
Furthermore, this device intends to provide bedside decision support and monitoring capability for stroke patients.
Dr Ron Weinberger, CEO of EMVision, commented-
EMvision updated the market that the Company was not materially impacted by the recent COVID-19 restrictions in NSW and is currently progressing its key activities in line with the Government Health guidelines.
Cochlear Limited (ASX:COH)
Cochlear is a frontrunner in implantable hearing devices that help restore hearing and connect individuals to a world of sound. The Company offers several products and accessories to provide hearing solutions, including Cochlear Nucleus System, Cochlear Baha System and Cochlear Baha Start.
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In February 2021, the Company obtained approval from the US Food and Drug Administration (FDA) and CE Mark accreditation for its Cochlear™ Baha® 6 Max Sound Processor, created to enhance hearing outcomes for individuals having single-sided deafness, mixed or conductive hearing loss.
Resmed Inc (ASX:RMD)
Resmed is an innovative solutions provider to treat and empower people to live healthier and higher-quality lives.
In the third quarter of FY21, the Company witnessed a revenue increase of 5% in Software as a Service (SaaS) due to continued growth in resupply service offerings and stabilising patient flow in out-of-hospital care settings.
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On 15 July 2021, ResMed announced its plans to release financial and operational results for the fourth quarter of FY2021 on 5 August 2021.
Resmed declared an interim dividend amounting to AU$0.035 that was paid on 17 June 2021.