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ResMed (RMD)-Backed Landmark ALASKA Study Favors PAP Therapy

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ResMed Inc. (RMD - Free Report) -supported landmark ALASKA study was recently presented at the virtual European Respiratory Society (ERS) International Congress 2021. A late-breaking abstract from the study revealed that the use of PAP (positive airway pressure) therapy as advised, can significantly enhance sleep apnea patients’ chances of living. Notably, the landmark ALASKA study was amongst the 14 ERS-accepted abstracts presented, co-authored or supported by ResMed.

The study titled “CPAP Termination and All-Cause Mortality: a French Nationwide Database Analysis,” concluded that obstructive sleep apnea (OSA) patients who continued PAP therapy were 39% more likely to survive those who did not. Per management, this key finding of the study underscores the importance of identifying the hundreds of millions of people globally who have undiagnosed and untreated sleep apnea.

The outcome of the study is likely to bolster ResMed’s Sleep and Respiratory Care business.

Few Words on the Study

The landmark ALASKA study was conducted in collaboration with Professor Jean-Louis Pépin; universities of Grenoble, San Diego, and Sydney; Sêmeia; and other researchers from ResMed’s industry-academia collaboration medXcloud. The study was carried out over a three-year period, wherein researchers monitored more than 176,000 sleep apnea patients in France. According to the study's authors, the survival rate discrepancy remained significant when patients’ ages, overall health, other pre-existing conditions, and causes of death were taken into account.

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Benjafield, ResMed's Vice President of Medical Affairs as well as the study co-author, also presented the latest estimated prevalence of chronic obstructive pulmonary disease (COPD) in Europe from 2020 out to 2050 at the virtual ERS International Congress 2021. Per the European analysis, modelled on worldwide burden of disease and world bank population figures, reportedly 36.6 million Europeans have COPD as of 2020. The prevalence of the disease is expected to climb 39.6% to approximately 49.5 million by 2050.

Industry Prospects

Per a report published in DataM Intelligence, the global positive airway pressure devices market is set to witness a CAGR of 5.66% during 2021-2028. The surge in prevalence of sleep apnea is anticipated to drive demand for PAP devices. Other factors such as rising collaborations and growing R&D investments toward developing technologically-advanced devices are expected to drive the market during the forecast period.

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Per data provided by ResMed, sleep apnea affects an estimated 936 million individuals globally, which includes more than 175 million Europeans. However, more than 80% of the people who are affected go without treatment.

Given the substantial market prospects, the recent landmark ALASKA study backing PAP therapy for sleep apnea patients seems strategic for ResMed.

Notable Developments

In August 2021, ResMed launched its next-generation PAP device, AirSense 11. This PAP device was first made available in the United States. It is designed to enable patients begin and maintain treatment for OSA. The AirSense 11 includes noteworthy features like Personal Therapy Assistant, Care Check-In (which provides tailored guidance to PAP users) and the availability of remote software updates.

During its fourth-quarter earnings call for 2021, the company noted that its group revenue for the June quarter was up 14% year over year and 10% in constant currency terms compared to the prior-year quarter. The revenue growth during the quarter reflected an increase in demand for the company’s sleep devices and masks. The surge in demand was fueled by higher demand resulting from a recent product recall by one of ResMed’s competitors as well as recovery in sleep patient flow from COVID-19-impacted lower levels in the prior-year quarter.

In its earnings call, the company also noted that its cloud-based platform called Air Solutions currently holds more than 9 billion nights of respiratory medical data. Meanwhile, the company’s cloud-based AirView software solution for physicians has more than 16.5 million patients enrolled. In addition, ResMed improved its patient engagement platform, myAir. At present, this application is cloud-native and serverless in the cloud. This new myAir 2.0 release is also compatible with AirSense 11.

Share Price Performance

The stock has outperformed its industry over the past year. It has grown 70.2% compared with the industry’s 13.5% growth.

Zacks Rank and Key Picks

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

Better-ranked stocks from the Medical-Products industry include VAREX IMAGING (VREX - Free Report) , Envista Holdings Corporation (NVST - Free Report) and BellRing Brands, Inc. (BRBR - Free Report) .

VAREX, sporting a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Envista Holdings, with a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 27.4%.

BellRing Brands, carrying a Zacks Rank #2, has a long-term earnings growth rate of 29.1%.