I took a sizeable position in Resmed today.
I have watched this company for many years and always missed it any today I think was the right time to buy. It may fall further and if it does I will add more but to me this is now in oversold territory.
In regards to the short position that is growing I thought Claude discussed this well on Ausbiz the call segment today. I work within the health field and have researched a lot on ozempic and also had a lot of clients who have used this medication for weight loss. Like all medications it has some pretty significant side effects. You can find these from a easy google search. BUT the side effect that is of most interest to me is the loss of muscle mass.
Muscle mass is one of the most important things for longevity. You lose muscle mass the risk is you will likely increase your risk of falls as you age, increase your risk of chronic disease and the most important one increase your risk of metabolic consequences.
As ozempic has to be taken basically forever the odds are most people will come off this and stop at some point. Which is great for me because most are metabolically damaged and they often come to my service where my goal is to improve their health the proper way, with long term results. The odds of people taking this medicine for the long term is unlikely because they will begin to feel tired, fatigued and unwell. As you are essentially starving yourself you likely will have nutrient deficiencies which will cause a host of issues most notably low energy and poor cognition. The idea of not eating many meals throughout the day and week long term is unsustainable and the fact that you do not improve your body composition necessarily as you are losing weight but not sustaining muscle long term will not improve the overall confidence in the drug. The other thing is quick weight loss solutions dump an abundance of toxins into your system because your detoxification systems are unable to manage. Plenty of waste is stored in fat mass and those who are obese have large quantities of toxins stored in them. If they lose this weight rapidly this all gets dumped into the body and can make someone very ill. Simply put taking this drug long term is not at all sustainable in my opinion. The sad thing is once these people stop taking it and have completely FUC*ED their metabolic health they will regain the weight twice as fast as they now have limited muscle mass and continue to have large amount of fat tissue in the system. This will set them back even further and my assumption is we will have an even greater obesity epidemic.
One thing i could say is positive about it is that those who just want a quick fix could take it and hopefully then change lifestyle along the way with some improved confidence to then have long term effects.
Now with Resmed the idea that people will not need this because they have lost weight is not realistic. They will still need this product. In the future my assumption is that people who have taken ozempic will need it even more. My other assumption is the world will continue gaining weight and need sleep apnoea machines sadly. The trend has been growing for years and it is unlikely to change. Most people now consume fast food/uber eats and that will continue to grow.
I do believe that doctors will prescribe ozempic more to people as it is a great service to them, people go back monthly for a new script, they get $$ for the session and repeat customers. So where they may have offered a sleep study previously to monitor this perhaps they will say try this new drug and then if that does not work to fix the issue we will do the sleep study. I do think sleep studies will become easier so this balance could go the other way.
In summary, ozempic is not a long term solution to peoples health and sleep apnoea. The only way to do this is through lifestyle changes that provide long term results.
Disc purchased today IRL
