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ResMed-sponsored Studies Show Combining Home Oxygen and Home Non-invasive Ventilation is a Cost Effective Treatment for COPD

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Studies presented at the ATS 2018 International Conference
demonstrate that combining home non-invasive ventilation with home
oxygen therapy is more cost effective for patients with COPD and reduces
risks of mortality and hospital readmission

ResMed (NYSE:RMD, ASX: RMD)) announced today the results of two clinical
analyses conducted for the U.K. and U.S., demonstrating the cost
effectiveness of combining home oxygen therapy and home non-invasive
ventilation (NIV) therapy for patients with persistent hypercapnia
following a life-threatening exacerbation of chronic obstructive
pulmonary disease (COPD).

The ResMed-backed Home Oxygen Therapy – Home Mechanical Ventilation
(HOT-HMV) health economic studies, presented today at the ATS 2018
International Conference, build on earlier data demonstrating the
clinical and cost effectiveness of HOT-HMV therapy (i.e. combining home
oxygen therapy with home NIV), compared to treating with oxygen alone.

The U.K. study found that HOT-HMV treatment reduced exacerbation
frequency and 28-day hospital readmission. The U.S. analysis found a
58.3 percent reduction in 30-day readmissions for HOT-HMV patients
compared to those on home oxygen alone – and that HOT-HMV can actually
save patients money while improving their quality of life.

"It's common for a procedure or therapy to improve patient outcomes and
quality of life, but it's rare to have a significant clinical impact
with such a favorable economic impact as well, as HOT-HMV does," said
ResMed Chief Medical Officer Carlos M. Nunez, M.D. "This finding is very
positive news for people living with COPD who could benefit from
HOT-HMV. The cost-saving potential is one more factor for encouraging
wider use of this therapy option."

About the analyses

Cost-Effectiveness of Home Oxygen Therapy Home Mechanical
Ventilation (HOT-HMV) for the Treatment of Chronic Obstructive Pulmonary
Disease (COPD) with Chronic Hypercapnic Respiratory Failure Following an
Acute Exacerbation of COPD in the United Kingdom (UK):
This economic
analysis was based on patient-level medical resource utilization (MRU)
from the intention-to-treat analysis of an open-label parallel-group
randomized clinical trial. Patients with a hospital admission due to an
exacerbation of COPD requiring acute home mechanical ventilation (also
known as non-invasive ventilation, or NIV) with persistent hypercapnia
2–4 weeks after resolution of respiratory acidosis were enrolled.
Patients in the control arm were permitted to have NIV added to home
oxygen therapy if the primary end-point (hospital readmission) was met
and if pre-set safety criteria were breached (for example, persistent
acidosis and inability to wean from NIV). The MRU analysis included
patient-level evaluation of equipment (oxygen concentrator and NIV
device, including maintenance and support), patient-reported medication,
physician office visits, and hospital readmissions due to exacerbations.
Trial data was used to develop an economic model from the U.K. National
Health Service perspective. Costs were calculated by multiplying
observed MRU by standard unit costs (2017£) and summed at the patient
level. Quality-adjusted life years (QALYs) were measured based on
patient health utilities calculated with U.K. coefficients and
EuroQOL-5D data from the trial. One-way sensitivity analyses and a
bootstrap analysis with 1,000 iterations were conducted.

The U.S. analysis was based on the U.K. study. Trial data was used to
develop an economic model from the U.S. payer perspective. Costs were
calculated by multiplying observed MRU by standard unit costs (2017$)
and summed at the patient level. QALYs were measured based on patient
health utilities calculated with U.S. coefficients and EuroQOL-5D data
from the trial. One-way sensitivity analyses and a bootstrap analysis
with 1,000 iterations were conducted. Base-case incremental cost/QALYs
gained was negative $50,856.

About ResMed

ResMed (NYSE:RMD, ASX: RMD)), a world-leading connected health company
with more than 5 million cloud-connected devices for daily remote
patient monitoring, changes lives with every breath. Its award-winning
devices and software solutions help treat and manage sleep apnea,
chronic obstructive pulmonary disease and other respiratory conditions.
Its 6,000-member team strives to improve patients' quality of life,
reduce the impact of chronic disease and save healthcare costs in more
than 120 countries. ResMed.com

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