ResMed Expands in Czech-Slovak Markets - Analyst Blog

By Zacks Equity Research,

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ResMed Inc. ( RMD ) announced the completion of the acquisition of Prague-based Unimedis, a distributor of equipment for the treatment of sleep disordered-breathing in the Czech Republic and Slovakia. The terms of the deal remain undisclosed.

Per the deal, Unimedis will continue to cater to the entire Czech and Slovak markets under the ResMed banner, guided by country manager, Ondrej Kalas.

Sleep-disordered breathing (SDB) affects around 20% of the global adult population. Nonetheless, it is still a niche market segment in the healthcare industry, primarily due to low awareness levels.

ResMed plans to spread its wings in emerging markets, mostly through acquisitions. This inorganic growth strategy will help it to exploit opportunities in markets with greater potential. ResMed further believes that such a strategy will enable them to serve their customers in far reaching countries, with better sleep-disordered breathing and respiratory care solutions.

This acquisition is part of ResMed's consolidated attempts to expand its core business of sleep-disordered breathing products. The company is also considering the inorganic growth path for its fast-evolving Respiratory Care and Cardio-respiratory businesses.

The Czech Republic is primarily in focus with the country's health care policy undergoing a transformation, laying greater value on compliance and outcomes of reimbursed therapies. This fits in well with ResMed's solutions to enhance compliance and facilitate remote compliance management to improve quality and efficiency of patient care.

The foray into the Czech and Slovak markets should also be accretive to the growing portfolio of ResMed's respiratory care and cardiology solutions. The company has also recently acquired Warsaw-based Mediserv, now known as ResMed-Poland.

On the other hand, Unimedis expects to benefit from the ResMed brand name, and continue to offer consistent and quality service and products to its customers.

Currently, ResMed carries a Zacks Rank #3 (Hold). However, investors interested in the industry can consider stocks like Hill-Rom Holdings, Inc. ( HRC ), NuVasive, Inc. ( NUVA ) and Chimerix, Inc. ( CMRX ). While Hill-Rom Holdings and NuVasive sport a Zacks Rank #1 (Strong Buy), Chimerix carries a Zacks Rank #2 (Buy).

CHIMERIX INC (CMRX): Free Stock Analysis Report

HILL-ROM HLDGS (HRC): Free Stock Analysis Report

NUVASIVE INC (NUVA): Free Stock Analysis Report

RESMED INC (RMD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CMRX , HRC , NUVA , RMD

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