Developer and marketer of medical equipments for treating sleep
disordered breathing and other respiratory disorders,
) announced the commercial launch of its latest mandibular
repositioning device Narval CC in the US. The product was showcased
for the first time in the American Academy of Dental Sleep Medicine
This Narval CC was first developed by France-based Labaratoires
Narval, which was acquired by ResMed in 2009. Since its launch in
France, Narval CC has enjoyed a market leadership as a substitute
method for obstructive sleep apnea and snoring patients.
With the Labaratoires Narval acquisition, ResMed also provided a
supplementary solution to match its broad range of positive airway
pressure (PAP) solutions for snoring and obstructive sleep apnea
ResMed is one of the leading players in the generators, masks,
and related accessories market, for the treatment of obstructive
sleep apnea (OSA) and related respiratory disorders. The company is
focused on developing medical equipment for the diagnosis and
treatment of sleep-disordered breathing.
The company remains hopeful about further business expansion
considering the huge and underpenetrated OSA market. Also the
latest research report, which showed that improper OSA treatment,
can lead to heart disease, type 2 diabetes, obesity, chronic
obstructive pulmonary disease and cancer directed to more general
awareness in the market.
The company also remains encouraged with the launch of Narval CC
as an alternative to the traditional PAP treatment, which many a
time patients fail to continue with.
We remain encouraged with several recent strategic initiatives
of ResMed including product launch and acquisitions. Moreover,
ResMed is working on a continuous basis to expand its international
operations. Earlier in May 2012, the company launched its first
product in Japan named Omron Sleep Design HSL-101, a wireless sleep
The company has teamed up with
) in a 5-year exclusive distribution agreement, providing
CareFusion the exclusive right to distribute the ResMed Stellar 100
and 150 non-invasive ventilators and their related accessories into
the institutional healthcare market.
Based on a favorable product mix and growing demand in the
sleep-disorder breathing market, ResMed reported 18% year-over-year
increase in revenues in Americas while outside Americas, revenues
increased 4% (up 7% at Constant Exchange Rate) in the third quarter
of fiscal 2012. ResMed's overall business remains relatively
unimpaired by economic cyclicality.
The homecare industry is benefiting from an aging population and
a trend toward greater availability of medical care service outside
hospitals. For fiscal 2012, the Zacks Consensus EPS Estimate was
$1.71 on revenues of $1.4 billion.
We believe that the under-penetrated silhouette of the Sleep
Disordered Breathing ("SDB") market with increasing patient and
clinical awareness, lends resilience to ResMed. The company
currently retains a Zacks #1 Rank, which translates into a
short-term Strong Buy rating. Also, we have a long-term Outperform
recommendation on the stock.
CAREFUSION CORP (CFN): Free Stock Analysis
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