Respironics CEO Is a CPAPer

Phillips Respironics CEO resting easy these days
Buzz up!By Rick Stouffer, TRIBUNE-REVIEW
Sunday, March 22, 2009


Don Spence has a unique perspective on Philips Respironics — and it has nothing to do with being the Murrysville-based, sleep products company's chief executive.

More than four decades ago, his injured grandmother's situation illustrated to Spence the need for a single-button, medical alert monitoring system for the aged in their homes. And Spence goes to bed every night wearing a mask to aid him in overcoming his sleep apnea. The monitor and the mask both are produced by the company he heads.

"Respironics was a proud company started by Jerry McGinnis in 1976, and I have an obligation to the company that it remains healthy," said Spence, 55. "If I don't sleep well, I'm worrying about that."

Five months into the CEO job, Spence should be sleeping well. Respironics Inc. was performing well enough on its own that Royal Philips Electronics was willing to pay $5 billion in late 2007 for the company and to make it the base for its Home Healthcare Solutions business.

An expansion announced before the Philips bid — a $32 million, 165,000-square-foot sleep therapy products manufacturing plant in Upper Burrell, Westmoreland County — will come on-line within months. The new site is expected to employ 575 workers, with anticipated growth of 20 percent in five years, which could mean another 100 jobs.

All 575 positions will be transferred from Murrysville. That 125,000-square-foot plant, built in 1990, will be used as a multipurpose facility for manufacturing and other uses.

"I think the Philips buyout was a good deal for Respironics, as the company can benefit from Philips' global reach, allowing Respironics to sell its products abroad and generate additional growth," said Peter Olofsen, an analyst in Amsterdam, The Netherlands, who follows Philips for Kepler Capital Markets.

The independent Respironics was very successful and profitable, as it continually turned out new and refined products related to improving the sleeping comfort of its customers' customers. Sales were in the $1.2 billion- to $1.3 billion-range, a figure that grew to $1.6 billion in 2008.

Little more than signage changes have occurred at Murry Ridge Lane to let workers and visitors know that previously publicly-held Respironics now is a Philips subsidiary. The deal was announced on Dec. 21, 2007, and closed on March 17, 2008.

"Generally, if I'm asked about substantial changes here, I'd have to say no," Spence said. "There have been a few leadership changes, at chief financial officer and at general counsel, but relatively few people left, and we've added no additional products or services."

Backed with the deep financial pockets of the international lighting/health care/lifestyle giant and its $34.3 billion in annual sales, industry watchers inside and outside Philips Respironics said the deal benefits all sides.

"Today, we're Philips employees, and our two cultures are not unalike," said Spence, who joined Respironics in 2005 as president of its Sleep and Home Respiratory Group, then took over as Philips Respironics CEO in November, when John Miclot left the position after five years to head Clearwater, Fla., medical equipment-suppliers provider, CCS Medical.

Miclot could not be reached for comment.

"We're trying to stress to our employees that there still are opportunities to be health care pioneers, with our older population and such chronic diseases as diabetes and chronic obstructive pulmonary disease (lung disease)," Spence said.

Respironics' association with its customers likewise has remained intact, customers say.

"I've been a Respironics customer for about nine or 10 years," said Todd Cressler, CEO of CressCare Medical, a three-office, Harrisburg-based home health care provider, which specializes in treating sleep disorder breathing conditions in 17 counties in Central Pennsylvania. Its annual revenues total about $4.1 million.

"We switched to Respironics because they provide support to individual suppliers like me. They always are willing to help me," said Cressler, who added he's seen no change in how Philips Respironics employees conduct business.

But Philips Respironics' quiet time is coming to an end. With Spence himself a big running fan, the company this year is sponsoring the inaugural Philips Respironics Half Marathon race, in conjunction with the Dick's Sporting Goods Pittsburgh Marathon 2009, both slated for May 3 in the city. There are no entry spots left.

"Philips is trying to transform itself into a health and wellness company," Spence said. "I felt it was a good idea to highlight Philips Respironics and to give back to the community."

The company has endowed chairs in sleep science at the University of Pennsylvania, along with Harvard, Stanford and Wisconsin universities.

"We felt it was critically important to show strong support to the sleep institutes, to be involved with the pre-eminent sleep therapy institutes in the country," Spence said.

The Philips Respironics CEO said new products will hit the market this year, although he wouldn't reveal any secrets. "We're bullish on our product lineup," Spence said. "We must do our best to maintain our employees and not to cut important projects."

http://www.pittsburghlive.com/x/pittsbu ... 17196.html

ozij wrote: ......Poor guy, forced to use only one company's masks....

........ O.

MrSandman wrote:I bet money he throws a sock over thse blue lights and the next machine will not have that issue. ..............

rooster wrote:

ozij wrote: ......Poor guy, forced to use only one company's masks....

........ O.

But O., in the privacy of ones's own bedroom? Who knows? There might be a Mirage.

Wulfman wrote:Been wondering if he may have (secretly) joined this forum and reads it now and then.
After all, there are others from Respironics and the other manufacturers who frequently read this forum.

I suppose it might be beneath the dignity of a CEO to actually join in on some of the discussions on a forum.


Den (Thinking it would be nice to have a direct channel into the folks in R & D.)

rooster wrote:

Wulfman wrote:Been wondering if he may have (secretly) joined this forum and reads it now and then.
After all, there are others from Respironics and the other manufacturers who frequently read this forum.

I suppose it might be beneath the dignity of a CEO to actually join in on some of the discussions on a forum.


Den (Thinking it would be nice to have a direct channel into the folks in R & D.)

I heard he was having a hell of a bad time with his sleep doc, the RT, and the DME. Then, on the sly, he became a member here and shortly thereafter fired his sleep doc and chewed out the DME. He then went home and changed his own pressure! He reads his card every morning.

He is now using dental paste between his lips, Pad-A-Cheeks on the straps, and ladies' tights leg around his mask. His bedroom smells of essential oils and Ayr gel; he bought a hose cover and an Aussie heated hose; he has a Papillow; and if he can cure the aerophagia his wife might let him move back downstairs into the master bedroom.

Slinky wrote:Aw, come on, guys. At least you experienced PAPpers. You know darn well it is the FDA and the medical profession limiting our access to our data, NOT the manufacturers.

Wulfman wrote:Been wondering if he may have (secretly) joined this forum and reads it now and then.
After all, there are others from Respironics and the other manufacturers who frequently read this forum.

I suppose it might be beneath the dignity of a CEO to actually join in on some of the discussions on a forum.