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ResMed Study Shows Remote Monitoring Benefits on CPAP Use

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ResMed, Inc. (RMD - Free Report) recently presented favorable results from a research study on positive airway pressure (PAP) at the American Thoracic Society’s 2019 ATS International Conference. The findings highlighted that remote monitoring and self-monitoring can improve continuous positive airway pressure (CPAP) adherence for sleep apnea patients. The results remarkable progress in ResMed’s medical innovation aimed at treating sleep apnea.

Outcome of the Study

According to ResMed, average adherence to PAP, which is considered the most superior form of treatment for sleep apnea, is around only 50%, if legacy technology is used without cloud connectivity or remote monitoring capabilities. Per the new study,researchers found drastically higher CPAP adherence rates when they assessed patients using 100% cloud-connectable devices that enable remote monitoring. Notably, 31,000 Brazilians, 17,000 Mexicans and 4.1 million Americans were found to have elevated CPAP adherence from using remote and self-monitoring technology.

ResMed treats this outcome as a huge positive with respect to the company’s progress in the field of remote and self-monitoring technology. According to the company, despite social, financial and healthcare system-related disparities, these countries have reached above-average adherence rates when treated with 100% cloud-connectable PAP devices.

Market Prospects

Per Coherent Market Insights, the global remote patient monitoring devices market was valued at $754.9 million in 2015 and is estimated to see a CAGR of 7.1% during the 2017-2025 period.

Recent Developments

Of late, ResMed has been investing in a few developments which are expected to boost its portfolio of sleep apnea treatment.

Last week, ResMed presented study results which proved that several demographic and clinical factors have an effect on adherence to PAP therapy. The study demonstrated significant differences in one-year adherence between people of different ages and disease severity levels. For instance, it was found that men with sleep apnea have 8.5 percentage points higher tendency to stay adherent on PAP therapy than women. Also, people over the age of 60 were 7.3 percentage points more adherent than the entire study cohort.

In April, ResMed unveiled its first top-of-head connected nasal pillows mask — AirFit P30i — in the United States. This is the company’s second top-of-head connected CPAP mask designed to treat sleep apnea. The rollout of the product is in sync with the company’s strategy of consistently strengthening its portfolio of sleep apnea devices.

Price Performance

In the past year, ResMed has outperformed the industry it belongs to. The stock has gained 9.5% compared with the industry’s rise of 0.4%.

Zacks Ranks and Key Picks

ResMed currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Masimo Corporation (MASI - Free Report) , CONMED (CNMD - Free Report) and DENTSPLY SIRONA (XRAY - Free Report) , each currently carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo’s long-term earnings growth rate is projected at 16.1%

CONMED’s long-term earnings growth rate is expected at 13.3%.

DENTSPLY SIRONA’s long-term earnings growth rate is predicted at 11.5%.

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