The new device weighs in at 18 pounds, shaving 10 to 20 pounds off of competing devices, makes less noise and uses less power than any other device in its class, Inogen said. The at-home device rounds out Inogen’s highly praised portfolio of portable systems.
The news gave INGN shares a jolt, sending them up 5% to close at $20.10 today. The stock has spiked 18% over the last month and is up 33% since the start of the year.
FDA clearance for the Inogen At Home system means that Inogen no longer has to look to 3rd-party companies to provide backup stationary care to patients already using Inogen’s One family of portable oxygen concentrators, or POCs. That could mean a major bump in Inogen’s margins, Leerink Partners analyst Danielle Antalffy wrote in a note to investors today.
"For INGN, the need to provide rental patients with a backup stationary device is already reflected in the company’s ~50% gross margins," Antalffy wrote. " Now with an in-house device of its own, INGN can likely drive a reduction in [cost of goods sold] that could boost margins by as much as 100 bps – 200 bps once launched later this year, based on our estimates."
The At Home system may also make Inogen a more alluring brand to nocturnal-only oxygen therapy patients, which make up an estimated 30% of the market, the company said. Leerinks’ estimate put that share closer to 50%.
Inogen plans to release the product on the market later this year, according to a press release.