Fisher & Paykel Healthcare’s $880m sales of hospital hardware over the past two years deserves NZ’s plaudits

New Zealand’s biggest company by  capitalisation  on the  NZX, Fisher & Paykel Healthcare which  sells  its  products in  120  countries, has  supplied $880 million of hospital hardware over the past two years.  That’s the equivalent of about 10 years’ hardware sales before COVID-19.

This  remarkable performance deserves  the  plaudits  of  all New  Zealanders.

And  as a  company  which spends nearly  10%  of  its revenue  on research it has  new products coming  on the market.

CEO Lewis  Gradon  (surely he  deserves a knighthood) says the growing body of evidence supporting the use of nasal high flow and  other respiratory therapies shows that its products have a clear role to play in improving care and outcomes beyond COVID-19 patients.

“We have a proven fifty-year track record of changing clinical practice and now we have the additional benefit of customers already having our hardware and clinical experience with its use.”

Great news from Kupe (if drilling permits could be acquired) – NZ has bigger gas and oil reserves than previously reported

In these  days  of  doom  and  gloom  over the  impact of the  Covid-19  pandemic, any outfit  which can trigger  a  ray  of optimism   deserves a  salute  from  the  rest  of the  country.

Fisher & Paykel  Healthcare, for  example,   reported  this  week that in the  four months to  July 31 it recorded a 390% lift  in the  sales of  its hospital  respiratory care  products,    compared with  sales in the same period  the previous  financial  year.  This  remarkable  performance reflects a changing trend in clinical practice to lead with nasal high flow therapy for treatment of Covid-19 patients in hospital. Global  sales   for  the Auckland-based  company of both invasive ventilation and Optiflow consumables in July have returned to similar levels to the peak it saw in April.

No  wonder  this   is   the  top capitalised   company  listed  on   the  NZX, valued at  over  $20bn.

In a  very  different  field,  but  like  the  F&P Healthcare report barely getting a mention  in the mainstream  media,  was   the  announcement   that  reserves  in  the  Kupe  gas and oil field  offshore  in  Taranaki  are  significantly   greater  than previously  reported.  This  means the  field’s  life  is  likely  to be  extended beyond  the 15-20  years  expected  when  it first  came on  stream   in  2009.

Businesses seem gloomy but health-sector companies are in good heart

The PM, Jacinda Ardern, received what her handlers would have perceived  as  unexpected  criticism  from the  media   after   she gave  a pre-budget speech to an Auckland business  audience.  One of those  in the  audience  was   said to  have   described   it  as  an   “ideological fairytale”;  others   apparently  were  disappointed   it had  “nothing for business”.   

Given   she  did list  as   two of the five priorities  in the budget as   being “creating opportunities for productive businesses, regions, iwi and others to transition to a sustainable and low-emissions economy; and supporting a thriving nation in the digital age through innovation, social and economic opportunities”,  the criticism itself  could be  regarded as  a    bit  “ideological”.

Surely   business  doesn’t  expect   government hand-outs,  even if  it  is labeled  a  “well-being”  budget?

But  there   seems  little   doubt    that   the   mood of  business  is downhearted   these  days.

Or is it  really?