ResMed's (NYSE: RMD) third-quarter net profit fell on the back of higher spending on R&D.
The maker of devices and treatments for sleep-disordered breathing, chronic obstructive pulmonary disease, and other chronic diseases, announced a three per cent decline in net income to $US88.5 million for the three months to March 31.
R&D expenses rose 4 per cent, excluding exchange rate fluctuations - an 11 per cent jump on a constant currency basis.
Revenue for the quarter was US$453.9 million, a 7 per cent increase compared with the corresponding period in 2015 - a 9 percent increase on a constant currency basis.
"We have seen sustained success with the execution of our healthcare informatics strategy driving seven consecutive quarters of device growth, since the Q1 2015 launch of our Air Solutions platform. This quarter our team delivered strong double-digit growth in the Americas region, with solid global constant currency growth of 9%. Customers have responded to the value proposition of our Air Solutions platform, including the efficiencies it brings to their businesses and its ability to help them drive even better patient outcomes through connected care," said Mick Farrell, ResMed's chief executive officer.
"We continue to build on our offerings across our strategy for both products and informatics solutions. This quarter we announced the close of the Inova transaction, which allows us to expand our respiratory care offerings to include portable oxygen concentrators. With the acquisition of Brightree in April, we have established ourselves as the outright leader for cloud-based end-to-end solutions in HME, home health, and hospice channels."
Farrell continued, "This expansion into new products and informatics solutions allows ResMed to continue its global leadership as a tech-driven medical device company. We are liberating healthcare data and unlocking value by providing actionable connected care solutions for patients, physicians, providers, and payers."