Fisher & Paykel Healthcare is a world leader in the design and manufacture of medical devices and systems for use in respiratory care, acute care, surgery and in the treatment of obstructive sleep apnea.
An iconic Kiwi brand and one of New Zealand’s most valuable firms with a market value of $19bn, F&P Healthcare has been operating in New Zealand for over 50 years.
With production facilities in New Zealand and Mexico, F&P Healthcare employ more than 5,000 people and their product range is sold in more than 120 countries worldwide.
F&P Healthcare believes product development and clinical research is critical to their success and employ over 600 engineers, scientists and physiologists who are principally engaged in clinical research and product and process development. F&P Healthcare currently invest approximately 9% of their revenue into research & development.
This investment into the company’s product development and research has been more than justified in the last 9 months, as F&P Healthcare’s Optiflow™ technology is proving essential as a front-line treatment option for Covid-19.
Technology for a pandemic
The Optiflow system is a range of non-invasive breathing aids and masks, designed to be used in hospitals or at home. Optiflow is used in nasal ‘high-flow’ therapy and gives medical professionals an alternative to mechanical ventilators.
Nasal high-flow therapy and the Optiflow system have been steadily gaining acceptance as a front-line therapy option for Covid-19 patients, as it has proven successful in keeping some Covid-19 patients off ventilators.
A testing time
Since January, the demand for F&P Healthcare’s medical devices – in particular the Optiflow system – has accelerated in an unexpected and extraordinary way.
At the start of the pandemic, F&P Healthcare assembled a rapid response team who worked out new processes, new procedures and new ways of working safely, allowing the company to double, and in some instances triple, output for some of their hospital hardware products over just a few months.
As medical professionals gain confidence in the Optiflow system, the expectation is that it will lead to wider use of the technology for patients with non Covid-19 related respiratory issues.
Ongoing demand
For the first three months of their 2021 financial year, F&P Healthcare’s Hospital product group growth continued to accelerate, with hardware growth of over 300%, and hospital consumables tracking at over a one-third increase, compared to the same period last financial year.
The increase in revenue was largely driven by the uptake of Optiflow, demand for products to treat Covid-19 patients, and strong hospital hardware sales throughout the course of the year.
During their 2021 financial year, F&P Healthcare will continue to grow their manufacturing capacity of hospital products to ensure a supply of respiratory products is available if demand continues. Currently, F&P Healthcare’s share price has risen over 65% as a result of the surge in demand for their products.
Shaping the future
F&P Healthcare has shown impressive performance and resilience during an unprecedented time. The company was able to successfully navigate their way through the limitations and restrictions put in place during the Covid-19 lockdown, continuing to maintain daily operations, supply product and innovate during mandatory lockdown periods around the world.
F&P Healthcare’s continued investment into product development and clinical research will ensure they remain a step change leader in clinical practice and patient care.
F&P Healthcare is a globally growing company that produces innovative medical products. It has been a long-standing holding in Booster investment funds.
