Medtech giant ResMedhas been spending up big on advanced manufacturing and digital health to chase post-pandemic growth, as Australia’s biotech heavyweights start pouring cash into projects for the next decade.

Over the past few weeks, the sleep treatments maker has launched a major manufacturing hub in Singapore and closed a €958.6 million ($1.4 billion) acquisition of German out-of-hospital software platform Medifox Dan.

ResMed chief Mick Farrell said the investments put the business in the right position to dominate the sleep treatments market for the next five to 10 years after riding two years of huge demand for its ventilator products.

“It sends a big signal to the market that ResMed is invested for the future and invested in growth,” he said.

The purchase of Medifox Dan, a German software-as-a-service business that provides tools for providers of out-of-hospital health treatments, bulks up the company’s digital health portfolio.

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The new Singapore manufacturing site has the capacity to produce sleep treatment products for the company’s entire customer base, Farrell said. The company is hoping to be able to ramp up its product output further in coming months as supply chain constraints on the semiconductors it needs for sleep apnoea products start to ease.

“The plant has the capacity to take care of every single one of the patient’s needs, right now. Of course, we’re rate limited by the supply chain and electronic components coming in, [but] it will get better throughout the fiscal year,” Farrell said.

ASX-listed healthcare stocks have been hit hard throughout 2022 and the sector is down by close to 5 per cent for the year-to-date. Despite this, Australia’s largest players have been splashing the cash on research and manufacturing projects designed to give them a global edge now that many of the challenges of COVID-19 are in the rearview mirror.