Inogen Secures Additional Facility to Support Direct-to-Consumer Sales Growth
Announces Expansion to Cleveland, Ohio Facility – Expected to be Operational in 2nd Half of 2017
GOLETA, Calif.--(BUSINESS WIRE)-- Inogen, Inc. (NASDAQ: INGN), a medical technology company offering innovative respiratory products for use in the homecare setting, today announced that it has secured an additional facility in the Cleveland, OH area. The expansion is in support of the growth in the direct-to-consumer line of business.
Inogen expects the Cleveland location will allow access to an ideal area of recruitment across northeastern OH, and will facilitate the continued expansion of its direct-to-consumer sales force. As of December 31st, 2016, the direct-to-consumer sales force consisted of 177 sales representatives located in Inogen’s Goleta, CA and Richardson, TX facilities. In addition to sales representatives, the Cleveland location will also include customer service and support functions. “We are planning on adding additional headcount of approximately 240 people in the Cleveland area location over the next three years,” said Inogen President and Chief Executive Officer, Scott Wilkinson. “We look forward to having a sales and service support location based in the eastern time zone which we think will allow us to better serve our customers.”
Adding to the benefits of a prime labor market and a physical presence in the eastern time zone, Inogen has secured tax benefits from state and local governments of up to $1.9 million over the next three years based on forecasted headcount additions and tenant improvement costs. According to Inogen co-founder and Chief Financial Officer, Ali Bauerlein, “The tax benefits and the strong market for skilled labor in the area were the primary lures of Cleveland, OH for the site of this expansion when compared to a dozen or so other U.S. cities under consideration.”
Inogen plans to continue operation in its existing facilities without material change.
Inogen has used, and intends to continue to use, its Investor Relations website, http://investor.inogen.com/, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. For more information, visit http://investor.inogen.com/.
Use of Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Inogen’s expectations for recruitment access in northeastern Ohio, the expected impact of Inogen’s new Cleveland facility on its direct-to-consumer sales channel, hiring expectations in the Cleveland facility, expected benefits of having a sales and service support location in the eastern time zone, expected tax benefits associated with the new Cleveland facility, and Inogen’s plans for its continued use of existing facilities. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including but not limited to, risks arising from the possibility that Inogen will not realize anticipated benefits associated with the Cleveland facility; the impact of reduced reimbursement rates; the possible loss of key employees, customers, or suppliers; and intellectual property risks if Inogen is unable to secure and maintain patent or other intellectual property protection for the intellectual property used in its products. In addition, Inogen’s business is subject to numerous additional risks and uncertainties, including, among others, risks relating to market acceptance of its products; its ability to successfully launch new products and applications; its ability to continue its Inogen One G4 product rollout; competition; its sales, marketing and distribution capabilities; its planned sales, marketing, and research and development activities; interruptions or delays in the supply of components or materials for, or manufacturing of, its products; seasonal variations; unanticipated increases in costs or expenses; and risks associated with international operations. Information on these and additional risks, uncertainties, and other information affecting Inogen's business and operating results are contained in Inogen's Annual Report on Form 10-K for the year ended December 31, 2016 and in Inogen’s subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission, including Inogen’s Quarterly Report on Form 10-Q for the period ended March 31, 2017. These forward-looking statements speak only as of the date hereof. Inogen disclaims any obligation to update these forward-looking statements except as may be required by law.
Inogen is innovation in oxygen therapy. We are a medical technology company that develops, manufactures and markets innovative oxygen concentrators used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions.
For more information, please visit www.inogen.com.
Investor Relations Contact:
805-562-0500, ext. 7
Byron Myers, 805-562-0503
Source: Inogen, Inc.
Released June 2, 2017