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ResMed's (RMD) AirSense 11 to Boost Sleep Apnea Digitalization

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ResMed Inc. (RMD - Free Report) recently launched AirSense 11, the company’s next-generation PAP (positive airway pressure) device. AirSense 11 is available in the United States, with other countries to follow, and is compatible with all ResMed masks.

AirSense 11 includes new features like Personal Therapy Assistant and Care Check-In intended to offer customized guidance to PAP users, helping ease them into therapy and comfortable use at night. Other features include the availability of remote software updates.

The recent launch will strengthen ResMed’s Sleep and Respiratory Care segment.

More on AirSense 11

AirSense 11 offers interactive step-by-step tutorials via the myAir app for patients to set up their device and adjust to therapy pressure. The device’s sleek design, touch screen, and intuitive menu looks like a smartphone, making it easy to use, developed to support increased adherence to therapy.

AirSense 11 also lends access to myAir (patient engagement app) and AirView (remote monitoring platform for clinicians). The myAir app tracks the amount of time patients spend using CPAP therapy, number of sleep apnea events per hour, mask leak, and the number of times a mask was removed, providing nightly data on breathing, coaching tips, and support directly to their phone.

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AirView offers a secure, cloud-based patient management system for virtual patient monitoring that allows healthcare professionals to rapidly access patient data, share clinical insights with other health professionals, improve care and reduce costs related to patient follow-up.

Significance of the Launch

AirSense 11’s new customized features along with myAir patient engagement app help offer people the support they need to use PAP – the gold standard for treating sleep apnea, comfortably and confidently every night.

The digital health feature guides patients and enables clinicians to offer great care to all patients more efficiently.

Industry Prospects

Per a report by Grand View Research, the global sleep apnea devices market size was valued at $3.70 billion in 2020 and is expected to reach $6.10 billion by 2028 at a CAGR of 6.2%. Increasing awareness about these diseases, the rising availability of technologically-advanced devices and adherence to supporting treatment by patients are factors driving the market.

Progress in Sleep and Respiratory Care Devices

During the fiscal fourth quarter, ResMed registered double-digit growth revenue growth across its core sleep apnea and respiratory care business.

ResMed recorded a rise in device sales driven by both sleep patient flow recovering from the COVID-impacted reduced levels in the prior-year quarter and by increased demand in response to the recent product recall by one of ResMed’s competitors. Geographically, the United States, Canada and Latin-America region’s device sales rose 30%. In the combined Europe, Asia and other markets, the rise in device sales was 2% at CER. Globally, the device sales increased 12% at CER. Further, excluding the impact of COVID-related sales in the year-ago quarter, global device sales rose 46% at CER.

Price Performance

Shares of the company have gained 52.4% in a year’s time compared with the industry’s rise of 12.2%.

Zacks Rank and Key Picks

Currently, the company carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space are Envista Holdings Corporation (NVST - Free Report) , BellRing Brands, Inc. (BRBR - Free Report) and Henry Schein, Inc. (HSIC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.

Envista Holdings has an estimated long-term earnings growth rate of 26%.

BellRing Brands has an estimated long-term earnings growth rate of 22%.

Henry Schein has a projected long-term earnings growth rate of 14%.