- Inogen is shifting its focus more towards its rental model, a model that offers a much larger potential customer pool and good margins, but requires meaningful investment and physician/payor outreach.
- Selling $2,500 medical equipment directly to patients addresses a profitable, but limited, customer pool, while establishing POCs as a standard of care creates a larger long-term addressable rental market.
- Clinical data will be more important to prescribing physicians, but Inogen could see earlier therapy attachment points, and insurance companies could contract with Inogen to offer POCs through Medicare Advantage.
- A healthy rental-based model can drive high single-digit long-term revenue growth (or more) with attractive margins, but it will take time and money to establish that foundation for growth.
For further details see:
Inogen's Strategic Shift Seems Prudent, But It Will Take Time To Deliver