RMD - ResMed Inc.

[peter2]

From AFR article: [Author: Joshua Peach]

"Shares in ResMed plunged more than 13 per cent on Monday after results over the weekend from a weight-loss drug trial resurfaced investor doubts about the sleep apnoea treatment provider’s key market."

Eli-Lilly reporting that its weight-loss drug, tirzepatide reduced the severity of sleep apnoea in 62% of the trial patients.

 

[Miner]

From AFR article: [Author: Joshua Peach]

"Shares in ResMed plunged more than 13 per cent on Monday after results over the weekend from a weight-loss drug trial resurfaced investor doubts about the sleep apnoea treatment provider’s key market."

Eli-Lilly reporting that its weight-loss drug, tirzepatide reduced the severity of sleep apnoea in 62% of the trial patients.

Thanks Pete.
The cpap are unreasonably expensive and clumsy. I know it. Even my wife could not sleep because of its sound( stronger than my snoring ) . After trial with three kinds, given up. The dental implants are doing excellent job. Private hospital doctors always discourage in Perth to use any thing to replace CPAP.
Possibly it was writing on the wall.
It's the time of price fall surprised me.

 

[Dona Ferentes]

so far, so good.
.
ResMed’s revenue rose 9 per cent to $US1.2 billion ($1.85 billion) in the last quarter of fiscal 2024: quarterly dividends have lifted to US53¢ per share, up 10 per cent.

In the 12 months to June, revenue jumped 11 per cent to $US4.7 billion, driven by high demand in the US, Canada and Latin America. Non-GAAP diluted earnings per share rose to $US2.08, from $US1.6 a year ago, thanks to strong sales and higher gross margins.

“Nearly 2.5 billion suffer from major sleep health and breathing disorders. As the market leader in these significantly underpenetrated markets, we’re well-positioned as the clear leader to drive increased market penetration, demand generation, and accelerate growth for our businesses,” said Mick Farrell, chief executive of ResMed

 

[Dona Ferentes]

$37.75 now, a high ... well above the Ozempic scare dump.

& sometimes Motley Fool has some ideas
.
Overnight, Apple (NASDAQ: AAPL) held its eagerly anticipated Apple Event 2024 Live at its headquarters in Cupertino, California. At the event, the tech giant unveiled new versions of the iPhone, AirPods, and Apple Watch.

While everybody loves to hear about the new iPhone, which is now in its 16th iteration, Resmed Inc shareholders may want to pay attention to a new feature that will be included on the latest Apple Watch. In fact, this new feature could be a big boost to ResMed and its shares over the coming years. But why?

Why is the new Apple Watch good news for ResMed shares?​

ResMed is of course a medical device company with a focus on sleep disorders. Its digital health technologies and cloud-connected medical devices transform care for people with sleep apnoea, chronic obstructive pulmonary disease (COPD), and other chronic diseases.

This is a huge market and arguably provides ResMed with a growth runway spanning decades not years. For example, in its recent results release, the company's CEO, Mick Farrell, commented:

Nearly 2.5 billion suffer from major sleep health and breathing disorders. As the market leader in these significantly underpenetrated markets, we're well-positioned as the clear leader to drive increased market penetration, demand generation, and accelerate growth for our businesses.
We're laser-focused on increasing awareness with the fast-growth population of sleep-health-interested consumers, creating virtual pathways that expand access to therapies, while offering a broad portfolio of medical device products, software solutions, and beyond, as we deliver value for all ResMed stakeholders.

As Farrell mentioned above, this market is significantly underpenetrated due to awareness. Over a billion people are believed to suffer from sleep apnoea, but only 20% of those afflicted with the disorder are diagnosed.

This is where the new Apple Watch comes in. Overnight, Apple revealed that its new Apple Watch Series 10 will be able to alert users to sleep apnoea by using an accelerometer to measure breathing disturbances while users are sleeping.

Apple notes that the feature was built using an extensive dataset and is expected to be cleared by the U.S. Food and Drug Administration and other regulators very soon.

Source: Apple

This could be great news for ResMed as it may give awareness of the disorder a major boost, which in turn could lift demand for the company's market leading products.

 

[finicky]

 

[mullokintyre]

Resmed seems to have recovered ok.
Given the size of this company, I am a little surprised there has not been more chatter over this stock.
Have been contemplating for a while to get into RMD, may have missed the boat.
Will still keep an eye on it, but it kinda looks fully priced.
really only interested in the growth part, its not the sort of stock you would buy for dividends, paltry yield less than 1%.
Mick

 

[finicky]

... but it kinda looks fully priced

Ya think?

 

[mullokintyre]

Kinda.
Mick

 

[finicky]

Market Matters' Friday afternoon report
Not Held

• ResMed (RMD) +5.92% reported after hours in the US with revenue of $1.22bn up 11% YoY and ahead of $1.19bn expected, EPS of $2.20 vs $2.07 consensus. Commentary was strong, the CEO Mick Farrell saying “Our first-quarter fiscal year 2025 results reflect ongoing momentum and strong execution across all areas of our business.”

 

[finicky]

Market Matters afternoon report

• Resmed (RMD) +3.55% beat analyst expectations across the board in its 3rd quarter update last week and continued to rally. GLP-1 weight loss drugs were initially thought to disrupt RMD’s business. However, instead they are driving higher rates of diagnosis of sleep apnoea and subsequent adoption of RMD’s devices.

 

[Value Hunter]

Resmed is one of those stocks that is perennially overvalued. In general growth stocks in Australia trade on higher p.e. multiples than in Europe or the U.S. because of supply demand imbalance for these types of stocks here.