Vapotherm expands production amid delta variant surge
Exeter company to add capacity in Mexico with expectation that Covid as a ‘permanent part of respiratory landscape’
Vapotherm Inc., Exeter, has announced plans to expand its disposables production capacity by 75 percent at its plant in Mexico. The company said the expansion comes as it prepares for the possibility that Covid-19 becomes a “permanent part of the respiratory landscape.” The expansion will diversify the company’s manufacturing base and is behind the firm’s concurrent announcement that it forecasts revenues of at least $120 million for the 2021 fiscal year – a significant increase from the previous forecast of $85 million to $91 millions.
“Covid-19 has accelerated the adoption of our technology, and our installed base has continued to grow since the start of the pandemic,” said Joe Army, CEO of Vapotherm. He added that “the impact of the delta variant on U.S. hospitalization rates has materially accelerated since we last updated our fiscal year 2021 revenue expectations on Aug. 9, 2021.”
He said the company expects the U.S. demand “to continue through the third quarter. We are monitoring other potential COVID-19 variants in our markets around the world and the U.S. flu and (respiratory virus) seasons, both of which have started earlier than we’ve seen historically.”