ResMed Inc. (NYSE:RMD) unveiled its first top-of-head connected nasal pillows mask — AirFit P30i — in the United States. This is the company’s second top-of-head connected Continuous Positive Airway Pressure (CPAP) mask designed to treat sleep apnea.
The rollout of the product is in sync with the company’s strategy of consistently strengthening its portfolio of sleep apnea devices.
More About the AirFit P30i
The AirFit P30i is equipped with a ‘tube-up’ connection, which helps to keep tubing out of the users’ way. The device enables the user to move and sleep in any position. With just two frame sizes and three cushions, the AirFit P30i conveniently fits 90% of wearers. This reflects on the product's flexibility.
Through a clinical study, it has been proved that the new nasal pillow mask is superior to contemporary models available in the market. Notably, twice the number of CPAP users reported that the AirFit P30i is easier and more comfortable to use.
AirFit P30i is already available in overseas markets like Europe, Australia and New Zealand. It will be commercially released throughout the United States and Canada on April 15 as well as other countries later this year.
Market Prospects
Rising healthcare expenditures, increasing obesity and unhealthy lifestyle practices along with more treatment options are anticipated to continue driving demand for sleep apnea devices. Per a Markets and Markets report, the global sleep apnea devices market is expected to witness a CAGR of 7.8% and reach $6.49 billion between 2018 and 2023.
Per the same report, North America is projected to be the largest market for sleep apnea devices in 2018. Considering abundant growth potential and the company’s position as the forerunner in the space, the product launch is likely to generate profits for ResMed.
Recent Developments
Of late, ResMed has been investing in several developments to maintain its lead position in the sleep disordered breathing (SDB) market.
In March 2019, the company launched its automated ResMed ReSupply solution for all U.S. home medical equipment (HME) providers to increase sleep apnea patients’ long-term therapy adherence and enhance patient satisfaction.
In January, ResMed launched the AirFit N30i — the first top-of-head-connected nasal CPAP mask — designed to treat sleep apnea in the United States.
Price Performance
In the past year, ResMed has underperformed the industry it belongs to. The stock has increased 2% compared with the industry’s rise of 11.3%.
Zacks Ranks and Key Picks
ResMed currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Varian Medical Systems (NYSE:VAR) , Penumbra, Inc (NYSE:PEN) , and Amedisys, Inc (NASDAQ:AMED) . Notably, each of these stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Varian’s long-term earnings growth rate is projected at 8%
Penumbra’s long-term earnings growth rate is estimated at 20.9%.
Amedisys’s long-term earnings growth rate is projected at 19.7%.
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