Back to top

Image: Bigstock

COPD Devices Gain Regulatory Go-Ahead: 3 Stocks in Focus

Read MoreHide Full Article

In January, the FDA approved an all-new double-combination therapy for clearance of airway in patients affected by chronic obstructive pulmonary disease (“COPD”). This new inhaler device, which is a combination of the company’s VersaPAP and Aerobika products, has been designed by Monaghan Medical Corporation.

The FDA also cleared NuvoAir’s Air Next, a portable, home-use spirometer device, in the same month. The respiratory monitoring device, which can be connected to iOS and Android devices via Blutooth LE, is also for patients with COPD.

Last December, CSA Medical attained CE Mark for its RejuvenAir device. Earlier last year, RejuvenAir was classified as a Breakthrough Device by the FDA and had attained unconditional Investigational Device Exemption (“IDE”) clearance to initiate pivotal clinical trials on COPD patients. The device specializes in treating COPD patients who are also suffering from chronic bronchitis.

A newly-designed assisted breathing device, Right Air vest, is likely to be commercially launched soon. The device is also focused on enhancing the quality of life of COPD patients.

With MedTech companies vying to tap the exponential growth in COPD market through the introduction of cutting-edge technology and regulatory authorities across the globe prioritizing the launch of these products, there are a number of stocks that deserve investors’ attention now. Let’s take a closer look.

COPD Treatment: A Booming Market

Per a report by MordorIntelligence, the global COPD devices market is anticipated to see a CAGR of 5.2% from 2020 to 2025. The encouraging projection has been largely backed by the steady rise in geriatric population, increasing percentage of smokers and chronic respiratory diseases (owing to urbanization and pollution levels), enhanced healthcare infrastructure and high healthcare expenditure.

Robust demand for point-of-care diagnostics and home care therapeutic devices has also been driving the market. Increasing portability and convenience of use of such devices, government initiatives to raise awareness, technological innovation and solid funding in clinical trials have been working in favor as well.

One of the key trends within the COPD management device market is the increasing adoption of non-invasive and multimodal ventilation. Some of the most crucial technological solutions in this market are therapeutic, monitoring and diagnostic devices along with consumables & accessories. The therapeutic devices can be further categorized into ventilators, nebulizers, humidifiers, oxygen concentrators, inhalers, reusable resuscitators, nitric oxide delivery units, and oxygen hoods.

A few key industry players gaining traction within the COPD space are Masimo Corporation (MASI - Free Report) and ResMed RMD.

3 Stocks to Focus On

Here are three MedTech stocks that have been exhibiting significant potential in the COPD management space:

ResMed: In January, this Zacks Rank #3 (Hold) company acquired Propeller Health, a digital therapeutics company that specializes in connected health solutions for people living with COPD. By the end of first-quarter fiscal 2020, the company achieved a milestone of more than 100,000 enrolments for the Propeller ecosystem.

Resmed also has more than 11 million patients being monitored with the AirView software, the company’s cloud-based platform for managing COPD. Around the same time, the company announced the complete launch of its portable oxygen concentrator — Mobi — in the United States for such patients.

In the past year, the company’s shares have outperformed the industry. The stock has rallied 70.6% compared with the industry’s 19.9% rise. The company’s revenue growth rate over the last five years has been 11.8% and earnings growth rate has been 10.5%.

Royal Philips PHG: This Zacks Rank #2 (Buy) company has been progressing well within the Sleep & Respiratory Care segment of its Personal Health business. Lately, the segment has been witnessing exceptional growth driven by the rollout of the DreamStation portfolio. The company has been gaining traction for its industry-leading home ventilation offerings, viz. the new Trilogy Evo ventilator platform. Trilogy Evo facilitates easy management of chronic conditions such as COPD by enabling physicians and care providers to store their patient information in a single secure location.

In the past three months, the company’s shares have outperformed the industry. The stock has rallied 13.5% compared with the industry’s 11.4% rise. The company’s earnings growth rate over the last five years has been 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific BSX: This Zacks Rank #3 company is a leading manufacturer of medical devices and products used in various interventional medical specialties. In May 2017, the company had announced favorable outcomes from a clinical prospective study of bronchial thermoplasty (“BT”), which assessed patients who have been treated with the company’s Alair System. The study proved that BT reduced the incidence of complications in patients suffering from chronic asthma.

In the past year, the company’s shares have outperformed the Zacks Medical sector. The stock has rallied 16.3% compared with the sector’s 6.2% rise. The company’s revenue growth rate over the last five years has been 8.3% and earnings growth rate has been 15%.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Masimo Corporation (MASI) - free report >>