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ResMed (RMD) to Treat Sleep Apnea With New AirCurve 11 (Revised)

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ResMed, Inc. (RMD - Free Report) recently introduced its AirCurve 11 series devices -- the company’s newest bilevel devices that use two levels of support, inspiratory positive airway pressure (IPAP) and expiratory positive airway pressure (EPAP). The device is combined with digital technology to make it easier for healthcare providers to treat sleep apnea and to help patients start and stay on therapy.

Built on ResMed's industry-leading AirSense 11 technology, AirCurve 11 devices enhances the range of options accessible to doctors and healthcare professionals in deciding how best to treat patients with sleep apnea.

More on AirCurve 11 Bilevel Devices

The AirCurve 11 is ResMed's advanced adaptive servo-ventilation (ASV) device which simulates the patient's own breathing, which is crucial for patients with central sleep apnea, obstructive sleep apnea, mixed apneas, or periodic breathing.

The AirCurve 11 is a bilevel PAP device meant to improve comfort and compliance by giving a higher-pressure during inhalation and a lower pressure during expiration. This design allows the gadget to better coincide with the patient's normal breathing rhythm.

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The AirCurve 11 series is built with a robust combination of features and settings to give next-level support to patients and providers, including integrated cellular communication, which allows for secure and automated data transmission to the cloud. It can then be accessed via AirView and myAir.  The device also includes the integrated heated humidifier can be controlled automatically using the Climate Control feature or manually by the user.

Benefits of the Launch

According to ResMed management, patient compliance increased from 70% to 87% as a result of using coaching features and having access to MyAir and AirView for tracking and seeing their nightly sleep data. For optimal comfort and support during therapy, ResMed has integrated these digital health applications into the new AirCurve 11 line.

Per management, the company’s approach to product development is predicated on always doing what is in the best interest of patients. This customer-centric attitude drives ResMed’s passion for launching products like the AirCurve 11 that allow people to better manage their sleep apnea from the comfort of their own homes.

Industry Prospects

Per a report by Grand View Research, the global sleep apnea devices market size was valued at $4.5 billion in 2023 and is expected to grow at a CAGR of 6.2% from 2023 to 2030. The growing geriatric population's vulnerability to sleep apnea is expected to drive the adoption of sleep apnea devices.

Progress within Sleep Apnea Treatment Business

ResMed is leveraging traditional healthcare channels and investing in cost-effective social media-driven demand generation campaigns to help consumers who are concerned about their sleep and breathing to find their way into screening, diagnostic, treatment and management pathways. In lieu of this, ResMed is tracking new patient starts in its physician and provider-based ecosystem, which now contains more than 26 million patient records as well as the new user starts in myAir, which is a patient app where patients choose to participate in their personalized healthcare journey to better sleep and better breathing.

ResMed noted that the patient adoption of the myAir app continues to be strong. The adoption rates of the myAir app by new patients set up on therapy with the AirSense 11 continue to be more than double that of AirSense 10.

Recently, the company launched an in-market trial of a ResMed-developed generative AI product that serves as a digital concierge to help a group of people to best navigate as they search for their sleep-related information and ask questions about their sleep wellness and potential treatment options.

Price Performance

In the past year, shares of ResMed have declined 14.6% against the industry’s 6.6% growth.

Zacks Rank and Other Key Picks

RMD currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .

Stryker, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.

Cencora, carrying a Zacks Rank #2, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.

COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.

Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and topped the Zacks Consensus Estimate by 1.1%.

CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.

(We are reissuing this article to correct a mistake. The original article, issued on February 13, 2024, should no longer be relied upon.)

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