ResMed Inc. (RMD - Free Report) recently launched its first continuous positive airway pressure (CPAP) nasal mask with a memory foam cushion, the AirTouch N20. Per the company, it is the softest nasal mask till date.
Notably, the AirTouch N20 uses the patented UltraSoft memory foam cushion, which is also used with the full face AirTouch F20 mask (launched in 2017).
AirTouch N20 is currently available in the United States, Canada and most parts of Europe. Launches in the Asia-Pacific region have been planned in the later part of the year.
Other notable mask offerings from ResMed include AirFit F30i (its first tube-up full-face CPAP mask, launched in this January), nasal tube-up AirFit N30i (released in January 2019) and nasal pillows tube-up AirFit P30i (released in April 2019).
With the launch, ResMed aims to strengthen its Sleep and Respiratory Care segment globally.
Significance of the Launch
Per management, the AirTouch N20’s memory foam cushion easily adapts to patients’ faces, creating a soft and individualized fit for more comfort and CPAP adherence. Additionally, the foam cushion does not require cleaning, provided it is replaced on an appropriate schedule.
Further, the design of the AirTouch N20 leads to patient satisfaction and adherence, thus leading them to undergo long-term therapy.
Per a report by Markets And Markets, the global respiratory care devices market is expected to reach $31.8 billion by 2024 from $20.6 billion in 2019, at a CAGR of 9.1%. Factors like rising demand for enhanced portable and compact respiratory care devices, growing demand for multimodal ventilation and increasing adoption of non-invasive ventilation are likely to drive the market.
Given the market potential, the launch has been timed well.
Of late, ResMed has been witnessing a slew of developments in its business arm.
The company, during its fiscal fourth- quarter earnings call in August, noted that robust demand for its ventilators and ventilation mask systems, and provision of digital health solutions and other tools to help customers with remote care amid the pandemic boosted sales during the quarter. The reopening of sleep labs and physician practices across many geographies and robust adoption of digital health solutions also look encouraging.
ResMed, in May, launched ResMed MaskSelector, which is a digital tool for remote patient mask selection and sizing. This according to the company will help patients receive care remotely.
In the same month, the company launched a cloud-based remote monitoring software for ventilators and Lumis bilevel devices across Europe, via its AirView platform.
Shares of the company have gained 29.9% in the past year against the industry’s 1.3% fall and the S&P 500’s 15.3% growth.
Zacks Rank & Key Picks
Currently, ResMed carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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