ResMed (NYSE:RMD) yesterday said it paid an unspecified amount to acquire Chinese respiratory device maker Curative Medical and reported fiscal 4th-quarter results that beat Wall Street’s expectations.
San Diego-based ResMed said Curative will operate under its own banner under founder & CEO Jason Sun. Curative’s vascular business was not a part of the deal, which is expected to close by the end of the year, ResMed said.
“Curative’s strong clinical, innovation and market reputation in China, combined with ResMed’s global leadership in sleep and respiratory medicine, will help many millions of people in China suffering from sleep-disordered breathing and chronic obstructive pulmonary disease,” CEO Mick Farrell said in prepared remarks. “By partnering with Curative we will jointly invest to accelerate our growth while improving patient quality-of-life and reducing total healthcare system costs in China. This is all part of our global goal of improving 20 million lives by 2020.”
“We are very happy to join with ResMed to help even more people who suffer from sleep-disordered breathing or chronic respiratory diseases,” Sun added. “Curative has a history of using the best global and Chinese technologies in a locally Chinese manufactured product. Together with ResMed we will leverage global and local operating expertise to improve many more lives in China and to reinforce ResMed’s strength in the respiratory space globally.”
Fourth-quarter sales, earnings top expectations
ResMed posted fiscal 4th-quarter profits of $87.5 million, or 61¢ per share, on sales of $453.1 million for the 3 months ended June 30, for a-0.3% profit slip on sales growth of 9.1% compared with Q4 2014.
Adjusted to exclude 1-time items, earnings per share were 68¢, 3¢ ahead of the consensus forecast on The Street, where analysts were looking for revenues of $436.7 million.
Full-year profits came in at $352.9 million, or $2.47 per share, on sales of $1.68 billion. That amounts to a bottom-line gain of 2.2% on sales growth of 8.0%. Adjusted EPS were $2.57 for fiscal 2015.
“We finished the year with strong double-digit constant currency revenue growth and greater than 50% flow generator growth in the Americas during the 4th quarter. As expected, we have also achieved a solid return to growth in our mask business. We have continued our active share repurchase program and the board has also declared an increase in our dividend,” Farrell said in prepared remarks. “This quarter we grew our healthcare informatics capability with the acquisition of CareTouch and earlier today, we announced the acquisition of Curative Medical, an investment in China that will provide a complementary brand with a robust respiratory care and sleep apnea product portfolio. We will continue to invest in R&D and manufacturing for the Curative brand in China as we grow our new ResMed-Curative business.”
RMD shares closed up 0.4% at $56.13 each yesterday.