ResMed : All Eyes On Brightree Buyout , Growth Plans On Track

On Jun 27 2016, we issued an updated research report on ResMed Inc. (NYSE:RMD) , a leading provider of sleep disordered breathing (SDB) and other respiratory disorder treatment products. The stock currently has a Zacks Rank #3 (Hold).

In sync with its Three-horizon growth strategy, ResMed is currently focused on expanding through acquisitions and gaining increased traction across geographic markets. Currently, all eyes are on the company’s impending acquisition of leading post acute care provider Brightree. Apart from that, it has recently completed the buyout of oxygen therapy device company Inova Labs.

The company’s partnership with Brightree will expand its Air solutions platform thus increasing its end-to-end value proposition by boosting its SDB products. Meanwhile, Inova labs buyout will enhance its respiratory care segment and boost revenues significantly.

Prior to this, the company had acquired Curative Medical, a Chinese global leader in SDB medical devices which had helped ResMed fortify its hold in china and the Asia Pacific region. Meanwhile, by 2020, the company is expected to pioneer ground breaking innovations and cater to a population of 20 million in the SDB market globally.

Moreover, ResMed is currently striving to expand in the vast market outside the U.S. Especially, Brazil, India, South Korea, China and Eastern Europe are the countries where ResMed is trying to consolidate its business. ResMed is also currently focusing on strengthening its foothold in Europe with respect to its life support ventilation solutions and non-invasive ventilation solutions for chronic obstructive pulmonary disease and neuromuscular disease.

We are also looking forward to the company’s flow of new product launch and innovations. The recent study result reveals that patients are 21% more adherent to CPAP therapy when they receive automated messages from ResMed's U-Sleep platform. Other recent product developments include a device for treating Cheyne-Stokes Breathing in patients with congestive heart failure.

On the other hand, ResMed has been facing issues such as unfavorable foreign exchange, pricing pressure and competitive threat. Amongst all these factors the critical trial failure will be affecting not only company’s sales but also its operations. The competitive bidding and reimbursement issue keeps on affecting stocks.

Key Picks in the Sector

Some better-ranked stocks in the healthcare sector are ICU Medical, Inc. (NASDAQ:ICUI) , Baxter International Inc. (NYSE:BAX) , Enzymotec Ltd. (NASDAQ:ENZY) , carrying a Zacks Rank #2 (Buy).

RESMED INC (RMD): Free Stock Analysis Report

BAXTER INTL (BAX): Free Stock Analysis Report

ICU MEDICAL INC (ICUI): Free Stock Analysis Report

ENZYMOTEC LTD (ENZY): Free Stock Analysis Report

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