Cost Efficiencies and Mix Shift to Underpin Margin Improvement for Fisher & Paykel Healthcare

Fisher & Paykel Healthcare is well positioned to benefit from long-term growth prospects in hospital and home respiratory care. Increasing adoption of nasal high flow therapy in the hospital division is a priority, followed by targeting treatment of COPD in the homecare segment, and longer-term surgical technologies. What management terms “new applications” consist of non-invasive ventilation, NHF therapy, and surgical humidification. Of these, we see the NHF devices and consumables, which are marketed under the Airvo/Optiflow label, as having the most potential reach. The benefits of NHF therapy delivered via nasal prongs include better clinical outcomes, leading to a shorter length of hospital stay and lower overall treatment cost.