ResMed Inc.RMD recently announced positive results from a company-sponsored research, supporting the efficiency of bilevel devices. The results were presented at SLEEP, an annual joint meeting of the American Academy of Sleep Medicine and the Sleep Research Society.
Bilevel Rescue Study in Detail
ResMed compared 1,496 non-compliant patients (per U.S. Medicare guidelines), who switched to bilevel therapy. Results demonstrated that therapy compliance was achieved by around 56.8% patients when they were shifted from positive airway pressure (PAP) therapy in the first 90 days of the treatment.
Per the company, a bilevel device releases two distinct pressures, one for inhalation and the other for exhalation. Patients, who are pressure intolerant or have persistent evidence of apnea at higher pressures, are often prescribed with the advanced bilevel devices.
We believe that positive results from this study are expected to boost the uptake of the company's bilevel devices .
A Glimpse at the Company
ResMed achieved strong global revenue growth over the past few quarters, led by sales of sleep devices, respiratory care devices, mask systems as well as software solutions. We believe, ResMed's product launches and strategies are anticipated to gain traction in the sleep apnea market and are expected to drive growth for the company in the near term.
Among recent developments, the company informed about its first self-branded portable oxygen concentrator, Mobi, subject to launch in the fiscal third quarter. It has also introduced AirMini, the smallest PAP (positive airway pressure) device in the world.
ResMed recently received reimbursement approval for mandibular repositioning devices in France. Further, it announced that South Korea will start reimbursing diagnosis and therapeutic treatment for sleep apnea in the near term.
Moreover, the company recently announced a definitive agreement to buy HEALTHCARE first - a privately-held provider of software solutions and services to home health, and hospice agencies - to boost its software-as-a-service business.
Per a report by MarketsandMarkets, the sleep apnea devices market is expected to worth roughly $6.49 billion by 2023, at a CAGR of 7.8% between 2018 and 2023. In view of the above data, we conclude that the developmental steps undertaken by the company seem to be progressive and are strategically aligned.
Share Price Performance
In the past three months, ResMed has outperformed its industry . The stock has gained 9.2% compared with 5.2% growth recorded by the industry.
Zacks Rank & Other Key Picks
ResMed currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical sector are Intuitive Surgical ISRG , Illumina, Inc ILMN and Amedisys, Inc. AMED . While Intuitive Surgical and Illumina sport a Zacks Rank #1 (Strong Buy), Amedisys carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Intuitive Surgical has an expected long-term earnings growth rate of 12.1%.
Illumina expects long-term earnings growth of 20%.
Amedisys has an expected long-term earnings growth rate of 17.5%.
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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.