– Q4 2021 Total Preliminary Revenue of $75.9
to $76.9 million –
– Provides Supply Chain and EU Operations
Update –
Inogen, Inc. (NASDAQ: INGN), a medical technology company
offering innovative respiratory products for use in the homecare
setting, today reported preliminary, unaudited revenue results for
the three-month and twelve-month periods ended December 31,
2021.
Preliminary Unaudited Revenue Summary:
- Total full year 2021 revenue is expected to be in the range of
$357.5 to $358.5 million based on preliminary, unaudited financial
data, up 15.9% to 16.2% from 2020
- Total fourth quarter 2021 revenue is expected to be in the
range of $75.9 to $76.9 million based on preliminary, unaudited
financial data, up 2.6% to 3.9% from the same period in 2020
“I am proud of how the organization performed in the fourth
quarter of 2021 despite the challenges relating to the constrained
availability of semiconductor chips,” said Nabil Shabshab, Inogen’s
President and Chief Executive Officer. “Our results for the full
year demonstrate the progress we are making to build and strengthen
capabilities and operating disciplines, drive focused execution
behind our new strategic imperatives, and selectively invest in our
business to lay the foundation for more sustainable and durable
performance and growth.”
Preliminary, Unaudited Fourth Quarter 2021 Revenue
Total preliminary, unaudited revenue for the three months ended
December 31, 2021 increased to a range of $75.9 million to $76.9
million, with a mid-point of $76.4 million used for comparison
purposes. Total preliminary, unaudited revenue of $76.4 million in
the fourth quarter of 2021 increased 3.3% compared to $74.0 million
in the same period in 2020, primarily driven by improved average
selling prices, sustained demand, and the reduced impact of the
COVID-19 pandemic and related public health emergency (PHE),
partially offset by supply chain constraints that limited product
availability, primarily in its domestic business-to-business
channels.
Direct-to-consumer sales are expected to be approximately $33.0
million in the fourth quarter of 2021, an increase of 23.3% versus
$26.8 million in the same period in 2020. The increase was
primarily driven by higher average selling prices versus the
comparative period in the prior year. Inside sales representative
productivity increased in the quarter despite slightly lower
average inside sales representative headcount, which was down
approximately 3% from the comparative period in the prior year.
Domestic business-to-business sales are expected to be
approximately $10.3 million in the fourth quarter of 2021 compared
to $24.2 million in the same period in 2020. The decrease was
primarily due to the supply chain constraints that limited product
availability in this channel.
International business-to-business sales are expected to be
approximately $20.1 million in the fourth quarter of 2021 compared
to $13.6 million in the comparative period in 2020. The increase
was primarily driven by increased ambulation of patients in Europe
and improving operational capacity of certain European respiratory
assessment centers closer to normal levels, as improving COVID-19
vaccination rates enabled patients to return to more normalized
activity levels and seek treatments. These increases were partially
offset by the supply chain constraints that limited product
availability in this channel.
Rental revenue in the fourth quarter of 2021 is expected to be
approximately $13.0 million compared to $9.4 million in the fourth
quarter of 2020. The increase was primarily due to increased
patients on service, higher billable patients as a percent of total
patients on service, and higher Medicare reimbursement rates.
Supply Chain Update
Inogen has made considerable efforts to address supply chain
disruptions through careful management of its complex, multi-layer
supply chain. This includes managing its regular supply chain and
focusing on sourcing semiconductor chips that are in short supply
from the open markets. The chip shortage is not unique to Inogen
and the sourcing of chips remains a challenge for the Company in
2022. As such, Inogen has engaged in efforts to redesign some of
the components that require semiconductors in its systems. In the
interim, due to chip shortages as of late December 2021, the
Company has temporarily suspended manufacturing operations
beginning January 3rd, 2022 at its Texas and California locations.
In addition, Inogen has asked Foxconn, the Company’s Czech
Republic-based OEM, to suspend manufacturing temporarily due to the
same supply constraints. No Inogen employees are expected to be
furloughed as a result of the suspension as the Company currently
anticipates restarting manufacturing at all locations around mid to
late February 2022 based on the information available to date. The
Company believes the decision not to furlough employees is a
prudent measure to enable a more efficient restart of operations by
reducing the need to rehire skilled labor in an increasingly
competitive and constrained labor market. In the meantime,
manufacturing teams are engaged in cross training and operational
efficiency projects, and the Company is using this time to
accelerate and finalize the move to our new plant in Texas which
should allow for additional capacity, once the supply chain
stabilizes.
European Operations Update
Current Inogen products are commercialized in the EU under
Medical Device Directive certificates, expiring on May 18, 2022.
The extension of the existing certificates under the EU MDD or
obtaining a new certificate under the EU Medical Devices regulation
is required for continued marketing in the EU after May 2022. The
Company is preparing the filing of the MDR submissions in the
earlier part of 2022, but expects that the time required for the EU
regulatory review will prevent the Company from selling any systems
in the EU beginning May 18, 2022 and possibly until the third
quarter of 2022. The Company is exploring ways to minimize the
potential impact on EU commercialization. This anticipated gap in
EU marketing is unrelated to product safety or performance and will
not impact US commercialization.
Sales Representative Headcount Update
Inogen’s total inside sales representative headcount was 292 as
of December 31, 2021, compared to 300 as of December 31, 2020, a
decline of approximately 3%. Inogen’s total physician sales
representative headcount was 35 as of December 31, 2021, compared
to 24 as of December 31, 2020, an increase of approximately 46%.
The Company has made notable progress on its physician sales
representative headcount expansion through its agreement with
Ashfield Healthcare, LLC and expects to give an update on its
progress at its fourth quarter 2021 earnings call.
Medicare Reimbursement Rates for Oxygen Effective January 1,
2022
Medicare announced that the reimbursement rates for oxygen
therapy increased effective January 1, 2022 by approximately 5% due
to the annual inflation adjustment. In addition, the 2% Medicare
sequester benefit that has been in place since May of 2020 due to
the COVID-19 PHE that was set to expire December 31, 2021 has been
extended until March 31, 2022. The sequester then resumes with a 1%
reduction to rates from April 1, 2022 until June 30, 2022, with the
full 2% Medicare sequester resuming starting July 1, 2022 and
continuing through September 30, 2030.
Inogen to Present Wednesday at J.P. Morgan Healthcare
Conference
Inogen’s management will present on Wednesday, January 12, 2022,
at the J.P. Morgan Healthcare Conference at 10:30 a.m. Eastern
Time. During the conference and in separate sessions with analysts
and investors, the Company’s officers will refer to an updated
slide presentation. A copy of this updated slide presentation is
available on Inogen’s corporate website.
A live audio webcast of the conference presentation and the
Q&A session will also be available on Inogen’s corporate
website. Interested parties can access the live audio webcast from
the News / Events section of the Investor Relations page on the
Inogen website at www.inogen.com. A webcast replay will be
available approximately one hour after the conclusion of the live
presentation and will remain available for 90 days.
Inogen has used, and intends to continue to use, its Investor
Relations website, http://investor.inogen.com/, as a means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD. For more
information, visit http://investor.inogen.com/.
About Inogen
Inogen is a medical technology company offering innovative
respiratory products for use in the homecare setting. Inogen
primarily develops, manufactures and markets innovative portable
oxygen concentrators used to deliver supplemental long-term oxygen
therapy to patients suffering from chronic respiratory
conditions.
For more information, please visit www.inogen.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, among others, Inogen’s expectations regarding its
preliminary, unaudited revenue, for full year and fourth quarter
2021 by channel; the anticipated restart date of our manufacturing
facilities in California and Texas; the period of time during which
our sales in Europe will be suspended; our expectation that
employees will not be furloughed while manufacturing is suspended;
the period of time during which our sales in Europe will be
suspended; the anticipated impact of the COVID-19 pandemic on the
Company’s business; expectations with respect to the Company’s
supply chain and continuing constraints related to the supply
chain; risks related to regulatory clearance and our ability to
sell our products; expectations for future growth; the expectation
for changes to the Medicare sequester; and updates on the Ashfield
sales representative strategy. Any statements contained in this
communication that are not statements of historical fact may be
deemed to be forward-looking statements. Words such as “believes,”
“anticipates,” “plans,” “expects,” “will,” “intends,” “potential,”
“possible,” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are subject
to numerous risks and uncertainties that could cause actual results
to differ materially from currently anticipated results, including
but not limited to, risks arising from the possibility that Inogen
will not realize anticipated revenue; risks related to the
Company’s supply chain and limited availability of semiconductor
chips used in its batteries and POCs, the risk of further slowdowns
or temporarily halts of production, or cost inflation for such
components; the risks related to the COVID-19 pandemic; the impact
of changes in reimbursement rates and reimbursement and regulatory
policies; and the possible loss of key employees, customers, or
suppliers. In addition, Inogen's business is subject to numerous
additional risks and uncertainties, including, among others, risks
relating to market acceptance of its products; competition; its
sales, marketing and distribution capabilities; its planned sales,
marketing, and research and development activities; interruptions
or delays in the supply of components or materials for, or
manufacturing of, its products; seasonal variations; unanticipated
increases in costs or expenses; and risks associated with
international operations. Information on these and additional
risks, uncertainties, and other information affecting Inogen’s
business operating results are contained in its Quarterly Report on
Form 10-Q for the period ended September 30, 2021, and in its other
filings with the Securities and Exchange Commission. Additional
information will also be set forth in Inogen’s Annual Report on
Form 10-K for the period ended December 31, 2021, to be filed with
the Securities and Exchange Commission. These forward-looking
statements speak only as of the date hereof. Inogen disclaims any
obligation to update these forward-looking statements except as may
be required by law.
The amounts set forth above are preliminary estimates. Inogen is
in the process of finalizing its results of operations for the year
ended December 31, 2021, and therefore, final results are not yet
available. These preliminary, unaudited estimates are based solely
upon information available to management as of the date of this
press release. Inogen’s actual results may differ from these
estimates due to the completion of its year-end closing procedures,
final adjustments and developments that may arise between now and
the time its financial results for the year ended December 31, 2021
are finalized. You should read Inogen’s audited consolidated
financial statements for the year ended December 31, 2021 once they
become available.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220110005280/en/
Investor and Media Contacts Bryan Locke, Mike DeGraff,
Gabriella Coffey ir@inogen.net
Inogen (NASDAQ:INGN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Inogen (NASDAQ:INGN)
Historical Stock Chart
From Apr 2023 to Apr 2024