) received favorable news with regard to its effort to protect
its patent landscape. Recently, the company's patent infringement
case against medical device maker BMC Medical progressed with the
involvement of the International Trade Commission which has
agreed to investigate the lawsuit.
At ResMed's request, the International Trade Commission conceded
investigation of this Chinese manufacturer and its Florida-based
distributors 3B Medical Inc. and 3B Products, L.L.C. in a patent
infringement case. Earlier, in May, ResMed filed a patent
infringement lawsuit in the federal court against BMC Medical.
The lawsuit claims, among other things, that several BMC Medical
products violate numerous ResMed patents. Specifically, the
company asserted that the RESmart CPAP and RESmart Auto CPAP
devices produced by BMC Medical infringe ResMed's intellectual
Further, some of the nasal masks manufactured by BMC Medical such
as Willow nasal pillows patient interface and the iVolve nasal
mask violate ResMed's patents. Notably, BMC Medical is among the
major competitors of the company in the international market.
ResMed's efforts to stop any further importation and sales of
these BMC Medical products into the U.S. through a lawsuit win
should lend a competitive edge to the company.
In April, the company filed parallel lawsuits in the
International Trade Commission and U.S. federal court to protect
its patent landscape from another international competitor APEX
ResMed currently holds a major position in the worldwide market
for generators, masks, and related accessories for the treatment
of SDB (sleep disordered breathing), especially obstructive sleep
apnea (OSA). The company enjoys a competitive edge over other
players in the market it serves. ResMed's ability to compete
effectively relies on its ability to protect its patent
Considering the SDB market overview, there is massive growth
opportunity driven by lifestyle trends, further penetration and
increasing awareness. Evidently, the company's new generation
products are major growth catalysts. ResMed has had to turn to
litigation to protect its intellectual property. The move is seen
as a coherent decision to spur innovation and new product
Currently, the stock carries a Zacks Rank #3 (Hold). While we
remain on the sidelines for ResMed, other medical stocks such as
LeMaitre Vascular, Inc.
) warrant a look. Alere carries a Zacks Rank #1 (Strong Buy)
whereas the other two are Zacks Rank #2 (Buy) stocks.
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