RMD - Inogen: New Management And A Major Competitor Exit Offer Some New Opportunities

2024-04-13 05:03:12 ET

Summary

• Inogen has continued to struggle, with growth in the rental business overshadowed by declines in direct-to-consumer sales, volatility in business-to-business sales, and pricing pressures.
• Inogen has the opportunity to leverage the exit of a major competitor, Philips, from the portable oxygen concentrator (POC) market.
• The new management team aims to position Inogen as the premium POC provider and partner with home medical equipment companies, while also focusing on the Physio-Assist opportunity.
• Inogen shares trade at a steep discount, but the Street typically wants nothing to do with low-growth small-cap med-tech, so management must present a credible plan for meaningful sustained growth.

Six months since my last update on the company, the situation at Inogen (INGN), a leading provider of portable oxygen concentrators (or POCs), is a little more interesting. The financials really haven’t improved and there are still valid concerns about the company’s strategic positioning, but the company has another new management team in place and has the opportunity to leverage the sudden market exit of a major competitor....

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