ResMed Inc. (RMD - Free Report) is successfully ramping up its masks and ventilators business amid the coronavirus crisis. The company is even taking the help of digital health tools for seamless allocation of its products during lockdown. The company recently launched ResMed MaskSelector, a digital tool for remote patient mask selection and sizing. This according to the company will help patients receive the care remotely.
The company’s masks and others business are expected to get a boost with this new initiative.
MaskSelector at a Glance
Based on patients’ sleep attributes and facial measurements, this MaskSelector tool can create personalized ResMed mask recommendations. The specification of the patient will be taken by an HME (home medical equipment) through a HIPAA-compliant single-use link.
Patients’ answers to a brief questionnaire and three facial measurements will then be incorporated into the MaskSelector portal. Based on patients’ responses, the tool will recommend the best suitable ResMed mask, along with options for alternate ResMed mask models and sizes.
This digital health technology solution launch comes at an opportune time as HMEs are facing challenges in finding suitable masks for each patient due to physical distancing. According to the company, this launch is crucial in the wake of the COVID-19 pandemic. It will increase remote capabilities of the HMEs and help them to select masks for patients.
In a recent survey of around 300 clinicians, 54% admitted about the challenges they are facing during the time of mask selection for remote patient settings. Also, 54% of the respondents said that they are willing to continue with this remote CPAP setup offerings even in the future.
This launch while ramping up demand for ResMed’s masks may also help the company to somewhat compensate for the loss of sales in the current scenario.
COVID-19-led Critical Care Drives Demand for Masks and Ventilators
Over the past four months, ResMed is seeing significantly ramped-up demand for its critical care products. Accordingly, it has scaled up production of ventilators, masks and other respiratory devices since March. In the third quarter of fiscal 2020, the company produced more than 52,000 non-invasive ventilators, including bilevels and invasive ones. According to the company, this marked a three-fold increase in production from the year-ago period.
The company believes that to increase the capacity of the health system along with taking care of the interest of patients, innovations like telehealth and telemonitoring are crucial services.
Share Price Performance
Over the past six months, the company has outperformed its industry. The stock has gained 11.7% against the 4.3% decline of the industry.
Zacks Rank & Key Picks
ResMed currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Aphria Inc. (APHA - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Owens Minor, Inc. (OMI - Free Report) .
Aphria has a projected long-term earnings growth rate of 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>