Will the Clouds Clear for Inogen This Year?

After years of flying through clear skies, Inogen encountered significant turbulance in 2019 that hurt the company's revenue growth and profitability. The company's troubles are not quite in the rearview mirror yet, but there are signs that the clouds are beginning to clear. "While we have our challenges, we believe we can create long-term shareholder value by focusing on increasing patient and physician awareness of our products," said Scott Wilkinson, president and CEO of Goleta, CA-based Inogen. The company, which makes portable oxygen concentrators and related accessories, had to navigate through volatility in business-to-business orders, direct-to-consumer salesforce issues, and product shortages last year, Wilkinson said during a recent earnings call. "We are working relentlessly to optimize our business with a focus on improving margins and meeting our target growth objectives. We've made progress on some fronts," he said, according to SeekingAlpha transcripts of the call. "However, we still expect the home medical equipment providers to continue to have lumpy buying patterns overtime, given their restructuring and financing constraints." Wilkinson said Inogen is assessing its organization from both a commercial and operational perspective in order to identify how to best maintain an attractive revenue growth profile while also delivering leverage into the company's business model. That said, Inogen is still considered a leader in po...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news