RMD
#<UNK>, the programs are in place and a number of initiatives that the team is working on for sure.
And then haven't got back to that in earnest.
We're over that hump of making sure we matched supply with demand.
So we are through all that, and we are working through ---+ typically what we do with the new platforms is then drive a pretty solid cost out program on that new platform.
We are now in the throes of doing that.
You probably maybe a little bit, but really I think more of that will flow through over the course of 2016, and it will be as I said earlier it will be more progressive throughout the year I think.
Yes, the sequential impact, and I've got a caveat because the exchange rate is moving around all the time, but if you look at it on a current exchange rate it's probably the sequential benefit of the weaker Aussie, it is in the order of 50 basis points, give or take.
It is that sort of quantum.
We're not giving a lot of granularity around ASP, obviously, from a competitive perspective and so on.
As <UNK> and <UNK> mentioned earlier, we are lapped through some of those most acute adjustments we were facing on pricing.
We are through that now.
So it is very much more of a typical or historical type of marketplace in terms of pricing.
There is still ---+ year-on-year there is still an element of decline and selling prices and so on, but there's certainly in today's environment much less acute than what we were facing back 21 months ago, for example.
Let me say it's a more historical normal state of play.
Good question, <UNK>.
I'll hand it to <UNK> <UNK>.
Obviously, <UNK>, we have made some acquisitions in Australia last year which were a bit of a change in our market model, and that's going very well for us.
Then, obviously, the Curative that we talked about.
But on a case-by-case basis, our strategy is we will continue to invest locally for local market development as appropriate.
And we've got very strong teams around there.
And then we are challenging that with trying to get efficiency with common core processes that let us leverage really the key product range through there.
Good question, <UNK>.
Clearly this is a public conference call, so if we have strategies, tactics and plans to compete with a very clearly known 12-month anticipated product launch, it's not something we would go through on the earnings call here.
The bottom line is, of course, we are ready for competition in this space.
As I talked to on the response to <UNK> earlier, we are quite complimented and excited about the fact that the new basis of competition is healthcare informatics and how good your cloud is.
Ad we are really excited about how strong the air solutions is and the value that we provide.
How well we have done, frankly, over the last 12 months and getting north of a million devices out there connected to the cloud and providing value to those customers.
We think ---+ we know that they've seen the value.
Of course they are going to try and sample a new product out there, and we do think the share we would gain would be something we build upon because of the value that we are providing.
But you know it's competitive game, and we look forward to it, and we are ready for it.
I think the valuable is incredible.
I talked about in the last call 59% labor cost savings.
I talked about on this call 83% more patients set up with the same labor costs.
These numbers are incredible, and these are the ones customers said it's okay to talk about because they are in markets where they have strong control, and they are comfortable sharing those data.
The ones in competitive markets are getting similar results and don't want to share the data.
<UNK>, you're closer to the business on this, do you want to share any further anecdotes.
I think it's a really good question, <UNK>.
We feel very confident we have a superior offer.
We're getting what you might term a lot of customer loyalty off of the offer because of the value that it's driving.
The device is a better device.
It is simpler to use.
It is simpler to set up.
It has a very elegant and reliable cloud connection built into it, so it's not complex to get it connected to the cloud.
And then our software offerings are the only offerings on the markets that are proven to increase compliance and therefore increase revenue and to lower costs.
We feel pretty confident.
As <UNK> said it is actually good for the market for the basis of competition in sleep apnea to shift toward health informatics, because it provides end to end care for patients.
It will provide better bang for the buck for the entire healthcare system.
And it puts us in a very good position, because we've enjoyed more than the year long lead in that now, and we will continue to press that lead.
So we feel very confident.
<UNK>, absolutely willing and happy to say we are the market share leader.
I don't want to go ---+ we are in 100 countries, and I don't want to go into individual countries or individual market shares within any of those individual countries.
But as you've seen the really, really strong high double-digit growth numbers over these last four quarters in flow generators, and look at the number of devices that we've sold and the market share and your assessment of the market.
I think you'd be pretty confident and pretty much every sellside analyst would be pretty confident we're the market share leader in not only flow generators but also masks globally.
But we don't want to go into details of it, <UNK>, for competitive reasons.
The main thing about market leadership is not just the market share leadership but the fact that you're innovating better and driving value.
I think one of the core parts of this is providing value for the end-users in the system who are the patients.
We provide the smallest, quietest and most comfortable and most connected care altogether to patients, and I think that's what's really driving our growth and leadership.
And frankly it's a challenge for us and anyone else playing in the field to continue to do that, and that is what the game's going to be going forward, providing that long term value to patients.
Thanks, <UNK>.
Replenishment is really an important part of sleep apnea care, because the masks do degrade over time and become more leaky.
To have a patient on sleep apnea care for a payer who is following it properly ---+ a payer provider who is following it properly, the investment of $100-odd on a mask every six months to keep the patient out of hospital where a visit to hospital can cost $2,000 to $3,000, $5,000 just walking in the door and spending one day there, the return on investment for payer providers who were following this model closely amongst their sleep apnea patients, their COPD patients, their neuromuscular disease patients, their [ovalet] patients the ROI is a no brainer when you've got the data.
I think our informatics solutions are allowing us to have the data to provide to payer providers and show that ROI.
And so I think you are transitioning from a world of utilization management where people just think of unit costs in a fee-for-service world to a world of care management where people are thinking about holistic costs for the patient and what it costs to not provide the diabetes supplies or to not provide the hypertensive meds or to not provide the sleep apnea mask.
And it is saying I'm going to cut back on diabetes supplies to save myself when then the diabetic is back in the hospital or to cut back on the number of masks and therefore have the sleep apnea patient show up at the hospital is a 1980s way of looking at from a utilization management front.
I think we're seeing that transition, and I think that the payers are really moving to that world of a ACOs and payer providers and looking to mimic the model of those successful payer providers.
But it is a transition world and we are playing in both the fee for service world and in the care management world and balancing between the two very carefully.
Thanks a lot, Melissa, and thanks for all the good questions.
In closing I want to thank the more than 4,000 strong ResMed team from around the world for their continued commitment to changing the lives of literally millions of patients with every breath.
I'm very proud of what this team has accomplished in creating the market leading innovation in connected care and healthcare informatics solutions in our medical devices, and we remain focused on our long-term goal of changing 20 million patient lives by 2020.
Thanks a lot, and we will talk to you all in 90 days.
