Company Report
Last edited a month ago
PerformanceCommunity EngagementCommunity Endorsement
ranked
#18
Performance (39m)
-9.4% pa
Followed by
72
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Short Interest
Last edited a month ago

ResMed is the third most shorted healthcare stock in the S&P500, with nearly 6% of the float short, behind Moderna and DaVita.

If the company continues to deliver and hit even something in the ballpark of its its longer-term aspirations, there's plenty of upside as more shorts will be forced to cover their positions, even after the great run we have had since the lows of last year.

#Broker/Analyst Views
Added 4 months ago

Part of the article here - https://www.livewiremarkets.com/wires/the-right-time-for-stock-picking-and-an-asx-company-we-believe-is-oversold

Fundie - Auscap

#Bull Case
Added 5 months ago

https://www.barrons.com/articles/resmed-stock-glp-1-cpap-386b2908

Text -

Shares of ResMed, a maker of CPAP and other sleep-apnea airway machines, have dropped because of new GLP-1 developments. It's an overreaction -- and the stock is a buy.

Shares are down 10% to $191 since Friday June 21, just before Eli Lilly released data showing that its Zepbound weight-loss treatment reduced obstructive sleep apnea severity by up to 62.8%. Patients who received the treatment in the trial said they had no longer had sleep apnea.

The worry is that this could threaten sales of Resmed's masks and flow generators, which comprise the vast majority of its $4.7 billion of revenue analysts expect this year, according to FactSet.

That worry is entirely overblown. Several companies have been selling GLP-1s at scale for a while, and demand for Resmed'sproducts have not taken any visible hit. Sales for the March-ended fiscal third quarter rose 7% to $1.19 billion from a year ago, the same type of moderate growth the company has enjoyed for years.

Plus, GLP-1s could even help the business. ResMed management argued on the earnings call that GLP-1s could trigger more people to take up the company's products. It said recent data show that current GLP-1 patients are 10.5% more likely to start positive airway therapy versus people not prescribed a GLP-1.

"Most doctors would say that a combination of CPAP and GLP-1s would be appropriate for a patient that presents with both sleep apnea and obesity," says Ponraj, Morningstar analyst. "We don't see GLP-1s shrinking the market."

That thesis, if it proves true over next few earnings reports, would send the stock back up to where it traded before the Zepbound data. Such a rebound has precedent; Dexcom, which makes continuous-glucose-monitoring devices for diabetics, saw its stock recover from an October low after earnings showed that weight-loss products weren't damaging the business. Intuitive Surgical, which makes machines used for bariatric surgeries, has seen its stock recover, and even recently hit new highs.

Beyond the short term, growth can keep coming because almost 1 billion adults worldwide currently have obstructive sleep apnea, according to The National Council on Aging. In addition, there are factors beyond body weight that cause the condition. So ResMed can grow for years to come, since it currently sells to just tens of millions of people. It competes with other makers of similar devices and surgical procedures, but historically, it has competed well, partly because Resmed's products cost hundreds of dollars but last months to years for some versions.

That's why sales can maintain a high single-digit-percentage annual growth rate for the long term. Analysts see revenue reaching close to $6 billion by 2026. As long as expenses such as product research and marketing don't balloon, profit margins can inch higher and earnings can grow faster than sales. Plus, the company often repurchases shares with its nearly $1 billion in yearly free cash flow -- and growing -- so per share earnings can grow in the double digits to almost $10 by 2026.

That can spark sustainable stock gains. If ResMed shares reclaim their 24.4 times forward-12-months price/earnings multiple from just before Lilly's data, they'd trade at $242 by the end of 2025, given the consensus earnings forecast for 2026. That's more than 25% upside in the stock from here.

Investors can breathe easier by picking up ResMed stock now.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 27, 2024 12:01 ET (16:01 GMT)

(c) 2024 Dow Jones & Company, Inc.


#Risks
Added 5 months ago

From Seeking Alpha. RMD shares lost 3.50% on Friday in the US, and were down another 5% in the after hours.


Respiratory device makers ResMed (NYSE:RMD), and Philips (NYSE:PHG) traded lower on Friday after Eli Lilly (NYSE:LLY) said an FDA decision on a potential label expansion for its weight loss therapy tirzepatide against obstructive sleep apnea (OSA) is expected later this year.

The announcement hurt the shares of ResMed (RMD) and Philips (PHG), which dominate the market for CPAP (continuous positive airway pressure) machines, an FDA-approved solution for OSA.

Shares of Inspire Medical Systems (INSP), which offers a minimally invasive solution designed to treat the condition, also came under pressure.

LLY’s announcement coincided with detailed results from its Phase 3 SURMOUNT-OSA program, in which tirzepatide, a dual GIP and GLP-1 receptor agonist, reached its main goals with or without PAP therapy.

The Indiana-based drugmaker said it has already submitted regulatory filings with the FDA, seeking a label expansion for the once-weekly injectable for moderate-to-severe OSA and obesity.

However, Axsome Therapeutics (AXSM), which markets a therapeutic option for OSA in the form of its sleep disorder therapy Sunosi, traded higher.

Similarly, in April, ResMed (RMD) and Philips (PHG) shares declined after LLY announced topline data from SURMOUNT-OSA, noting that two trials comprising the program reached their main goals.

#Fundie/Analyst Views
stale
Added 6 months ago

https://www.livewiremarkets.com/wires/why-has-resmed-rocketed-up-and-is-the-ride-over

#Industry/competitors
stale
Added 7 months ago

Phillips is settling in the US for personal injury caused by its faulty sleep apnoea devices.

The market is loving it, with shares up big. ResMed is down mildly in the pre-market.

More here - https://www.cnbc.com/2024/04/29/philips-shares-rocket-33percent-as-firm-settles-us-respiratory-device-case.html

#Bull Case
stale
Added 11 months ago

The shares seem to have broken out of a multi-month range between $21-25, on reasonable volume, which is encouraging price action. If this holds, a trip north of $30 beckons (likely hastened by the next quarterly earnings report on 24/01 if it beats expectations).

#Industry/competitors
stale
Added one year ago

From Seeking Alpha -


Philips (NYSE:PHG) lost ~8% in the pre-market Friday after the U.S. FDA said that the Dutch medical device maker has not shared sufficient details with the regulator regarding a major recall of its sleep apnea and respiratory care devices.

ResMed (RMD), a major rival of PHG in the sleep care market, added ~4% in reaction. Its other competitors in the industry include Inspire Medical Systems (INSP) and Owens & Minor (OMI).

"The FDA has reviewed the available information and data provided to FDA by Philips. We do not believe that the testing and analysis Philips has shared to date are adequate to fully evaluate the risks posed to users from the recalled devices," the agency said on Thursday.

While the company concluded that these devices have no significant health risks to patients, "the FDA believes additional testing is necessary," the regulator added.

While agreeing with the FDA's remarks on the need for more testing, Philips (PHG) said currently, five independent laboratories test the recalled products. The company added that it was in talks with the agency for further details.

"Philips' first priority is the health and well-being of patients, both in terms of providing replacement devices and testing to seek more clarity on the safety of the sleep and respiratory care devices under the recall," Reuters reported, citing a statement from the company.

Philips (OTCPK:RYLPF) has lost over 60% of its market value since it recalled millions of sleep apnea and ventilator machines in June 2021 over potential health risks.

##KneppyOnResMed
stale
Last edited one year ago

Presents a balanced view of the bull/bear points post-Q4 and FY results, but like a lot of market participants, seems to be concerned about the gross margin contraction trend.

https://www.youtube.com/watch?v=oy6TliSlFJA&t=26s