Adapthealth Nasdaqcm
Surprisingly, with any patient that says they’ve stopped using their equipment, we stop billing no matter what that is, of course. Jason, first, it sounds like you put in a range of estimates for the impact somewhere between 0 and $30 million. On the low end of your guidance increase, did you use the low end of the Philips impact or the high end of the Philips impact? I’m just trying to get a sense on how that played into the range. I mean we’ve got that at 7% to 9% is our end market expectation.
But diabetes for us has been — we’ve been in it for about a year now, and it’s been great. Out of the gate, we’ve been pushing e-prescribe and all the things that we’ve learned on the HME side of the business. So that’s then allowed us really to grow with the market, and DexCom and others are out there saying it’s 20-plus percent. So I think our diabetes businesses, as a reminder, is a smaller portion of our overall business. So even if you were going to get a higher organic growth number there, it nets into kind of 8% to 10% over the entire organization. We’re very proud of it, as Steve said in the prepared remarks, but we don’t include it or assume it’s a go-forward contribution to the company.
But as we get more data behind us, we will certainly evaluate these announcements as part of our 2022 financial planning cycle that just kicked off. We prepaid half of the outstanding principal on our 12% interest promissory note. We expect to pay down the remaining principal between now and September 30. We remain confident in our previously communicated synergy target of $50 million annually and $30 million in 2021.
We continue to be extremely excited about the future opportunities within this product category. With that, I’ll turn it over to Jason to discuss our financial results. Founded in 2012 and headquartered in Plymouth Meeting, Pa, Adapt offers a full suite of medical products for both rental and sale, with a focus on respiratory and/or mobility equipment, including CPAP sleep equipment, oxygen equipment, wheelchairs, walkers, and hospital beds.
The plan calls for joining Adapt to DFB Healthcare Acquisitions Corp., a special-purpose company backed by Deerfield that is already publicly traded — its share symbol will be changed from the current DBFH. A more detailed description of the transaction terms and a copy of the merger agreement will be included in a current report on Form 8-K to be filed by DFB with the United States Securities & Exchange Commission (“SEC”). DFB will file a proxy statement with the SEC in connection with the transaction. Adapt intends to continue to focus on increasing net revenue both organically and via accretive acquisitions and has identified a significant volume of potential acquisition opportunities it will target in late 2019 and early 2020.
And so just really dependent on how far that inventory goes based on what ResMed can do. I just don’t see new equipment coming from Respironics anytime this year. Unused product in the channel, product in the number of sites that you have, you’ve done a lot of M&A.