Invacare Corp will discontinue production of its line of respiratory care products, which include oxygen concentrators, aerosol delivery devices, cannula, masks and tubing. The move is an attempt to “increase shareholder value,” according to the company’s interim president and CEO Geoffrey Purtill.
“We remain committed to taking necessary and decisive action to increase shareholder value. After carefully evaluating our strategic options, we have determined that the lifestyle and mobility & seating categories are core to improving Invacare’s growth and profitability. As a result, we are discontinuing the production of respiratory products,” Purtill said in a quarterly earnings press release. “This will allow us to further streamline our operations and, we expect, to improve profitability by focusing resources on lifestyle and mobility & seating products, which continue to experience strong demand. We will also continue to take a hard look at every aspect of our business, leaving no stone unturned as we position Invacare for the future.”
As part of its ongoing transformation and updated strategic priorities, the company has determined that the lifestyle and mobility & seating categories are core to restoring its growth and profitability.
According to the company, the decision to discontinue production of respiratory products is expected to simplify operations and improve profitability by enabling the company to focus resources on its core business.
Invacare expects to discontinue the production of respiratory products in 4Q22 and to fulfill existing customer orders with inventory on hand.
The company will continue to operate its respiratory parts and service business and honor its respiratory-related warranty and regulatory obligations, according to the press release.