@jayjayjayjay ... no doubt positive news for $RMD.

It was interesting to note Mick Farrell's response to the Q&A on Phillips at last week's conference call. In short, they are bullish, even if Phillips were to return. I think that's may explain why the market reaction to the news has been muted. Mike has consistently played down the impact of the competitive threat on $RMD's growth propsects.

Mick says he welcomes competition - I guess he considers the threat of competition keeps the business on its toes and means they stay sharp and don't get complacent.

The answer provides a good insight into how $RMD view competitive dyanmics.

But all that said, Phillips being out of the machine devices for the US for several (4, 5, 7?) years, has to be a good thing for $RMD (and also for $FPH).

For me, however, Phillips serves as a reminder as to how vulnerable healthcare companies can be to quality issues leading to recalls. The lesson that I hope $RMD takes on board (and I have no doubt they will) is that quality is everything in that business.

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Extract from Transcript (Source S&P Capital IQ)

Q. I guess I'll just ask one on Philips. So I think they've talked about relaunching their flow generators in some of the OUS markets, just curious what you're seeing there? Have you seen that happening? And have they been able to recapture share anywhere?

A. Michael Farrell

Yes. Thanks for the question, Mike. And yes, certainly in tens of countries in Europe and Asia, we are in full competition with all the global players, including the company you mentioned and the large regionals from Europe and from Asia and have been for many quarters. So they've come back in masks and devices across tens of countries in Europe and Asia. And their goal there when they come back, if they've been out for a year or 2, depending on the time they're out of each market is to fight their way from the bottom. They've got 0% new patient start share when they first come back in and they're trying to fight their way up. And in general, they've had to fight against the #2, the #3 and the #4 player who don't have like ResMed has the leading technology, the best AirSense platform, right? The AirSense 11 globally is the best platform in all 140 countries. The second best platform in, I would say, all 140 countries is the AirSense 10 platform.

So their goal is to then fight against regional player from Europe with the #3 or a regional player from Asia, with the #4 in the countries that they're coming back. And so we're seeing that country by country. We're seeing them fight for that share at the low end. It's our focus as the market leader is on growing the market. And I think they're a fair competitor. We've competed against them for decades since they bought Respironics.

And in general, we've won and taken share. We were winning and taking share from them in 2019. We're winning and taking share from them in 2023 and 2024 as they come back country by country. And if and when they come back to the U.S. marketing devices, by the way, they're already here on masks, never left, and we've been competing and leading them there. I look forward to them coming back to this U.S. market so we can get any stock overhang away about what's it going to look like and what it's going to look like is what it looks like in all the other tens of countries where they fight for share from the bottom and work their way up. And I look forward to competition, a healthy competition. And we seem to do very well in it because we've got the smallest, quietest, most comfortable, most connected and most intelligent solutions, and it's really about that. It's about the value you provide getting that patient to the right care, lowering the cost and improving adherence. And we've done a great job, and I like all global competition in the space.