@thunderhead, yes interesting market response. $RMD pretty much unmoved in US. In fact somewhat surprising that they only moved -0.4% having been up 19% on Friday.

It is interesting to see $RMD CEO Mick Farrell's view on the return of Philips - text from Q&A on recent earnings call below. While on the one hand I wonder to what extent it is demonstrating hubris (have seen that in plenty of respected CEO's before) while on the other hand recognising that Philips do have a hill to climb back. It is important to recognise that although $RMD is the market leader in CPAP, there are a lot of players globally.

What's interesting to me is that players like $FPH - a top 4 CPAP provider - have made less progress due Philips' absence, albeit they have benefited.

On the other hand, with so much new patient volume coming down the GLP-1 funnel, maybe the industry needs as may quality players as it can get. ;-)

Question

Mike Toomey (Analysts)

It's Mike Toomey covering for Matt Taylor. Coming back to Philips. I know you said you're maintaining or growing share in the markets where they're returning. But are you seeing any significant pricing pressure or pricing discounts from them? And any thoughts on when they might return to the U.S. market based on the consent decree?

Answer

Michael Farrell (Executives)

Yes. Thanks for the question, Mike. And no, look, what we're seeing in the markets where that competitor has returned is that they're pricing for value, and they're trying to compete on value. And primarily, as they come back from sort of 0% share with new patients as they start in the market, they're competing with the sort of Tier 2 and Tier 3 players. So a local player in Europe or a local player in Asia, and they're not touching our share as the global market leader and global technology leader in this space.

And the work that we've been able to do these number of years that they were out of each market is to really entrench ourselves because we've got the lowest cost, the highest efficacy, the best technology and physicians love our digital data, patients love engagement with myAir and the whole ecosystem creates that value. So we really have seen -- as they come in the pricing for value and competing with Tier 2, Tier 3 players in those markets.

As to when they'll reenter from 0% new patient share into the U.S. market, I don't know. You can do your own analysis on a consent decrees. This one is a very severe one. It has a lot of inspectors sort of 5x the normal number of inspectors. I think 5 versus 1 and a lot of constraints on that. I look forward to great competition. We've got good competition from the players there now. When they come back, they'll have to compete with them first and us after that. But no, look, we were winning and taking share from that competitor in 2019, all the way from 2010 to 2019. We'll continue to do that and beat them whenever they come back to market. Thanks for the question.