Invacare Medical Device Intelligence Report

Research and Markets has announced the addition of the "Invacare Medical Device Company Intelligence Report 2009" company profile to their offering.
Headquartered in Elyria, Ohio, US, Invacare is a leader in the manufacture and distribution of home and long-term care medical equipment. The company manufactures, distributes and markets power and manual wheelchairs, patient aids, home care beds, home respiratory products, low air loss therapy products, seating and positioning products, bathing equipment and distributed products. Invacare operates predominantly in the home medical equipment industry segment and claims to hold leading or second market share positions in most of its business lines.

Invacare has over 6,000 employees and markets its products in 80 countries worldwide. The company's products are sold principally to over 25,000 home healthcare and medical equipment providers, distributors and government locations in the US, Australia, Canada, Europe, Asia and New Zealand.

As of June 2009, Invacare claimed to be the leading supplier of power and manual wheelchairs, patient aids, home care bed systems and home oxygen systems. Its only full-line competitor is Sunrise Medical. In Rehab Products, Invacare's key competitor is Pride Mobility, particularly in the consumer power and scooter markets, but also the custom power market. In Standard Products, Invacare competes solely with importers to the US market whom generally offer their products at a lower price and, in its Respiratory business, the principal competitor is Respironics (acquired by Philips in 2008) which offers a full respiratory product line. In Europe, competition is fragmented and changes from country to country. Competitors include Meyra in Germany, ETAC in the Nordic countries and Sunrise Medical.

Invacare reported consolidated net sales for 2008 of US$1.756 billion, up by 9.6% from the previous year's US$1.602 billion. Foreign currency translation increased net sales by two percentage points while acquisitions increased sales by less than one percentage point. The remaining increase was primarily driven by performance in the North America/Home Medical Equipment (NA/HME) and Europe divisions; however, positive sales growth was seen in all divisions. NA/HME recognised double-digit sales growth in all product lines, except Rehab, which had 9% growth, excluding Consumer Power Products. European net sales growth resulted from volume increases in most regions, especially the UK, which benefited from new product introductions, including the HomeFill oxygen delivery system.

In 2009 and beyond, Invacare believes it is facing two key challenges. The first challenge is the global economic recession. Weakening of currencies in Europe and Australia/New Zealand has negatively impacted the company and has already translated into lower profits. In addition, the recession is beginning to impact on Invacare's supplier and customer base. Secondly, the Centers for Medicare and Medicaid Services announced, in 2008, US reimbursement cuts of 9.5% for homecare providers for those product categories which had been included in the first phase of the - now delayed - National Competitive Bidding programme. These cuts were effective 1st January 2009.

Invacare will continue to seize opportunities to leverage its global resources/capabilities to improve efficiencies and further drive cost reductions. Invacare will rationalise and globalise its product lines, and leverage its global purchasing power, research and development, engineering, systems, and other support functions that together will: further increase resources committed to product development; assure future marketplace competitiveness; and continue to improve the company's profitability.