ResMed Inc. (NYSE:RMD) recently expanded its AirFit mask portfolio with the introduction of its first top-of-head-connected nasal CPAP mask, AirFit N30i, in the United States. The product is already available across Canada, Australia, New Zealand and most of Europe with more launches planned in other geographies, scheduled for late 2019.
AirFit N30i in Detail
This device has a top-of-head connection that keeps tubing out of the wearers’ way, letting them comfortably move and sleep in any position. Its nasal cradle cushion reduces facial markings and irritation.
Per the company, in comparison to other popular nasal top-of-head masks, three of four users preferred AirFit N30i over the traditional ones.
Market Potential
Globally, over 100 million are estimated to be afflicted with sleep apnea (per an article published in The Sleep Zone). This increasing incidence has driven demand for sleep apnea devices. Per a MarketsandMarkets report by, the global sleep apnea devices market is expecting a CAGR of 7.8% to reach $6.49 billion between 2018 and 2023.
Going by the same report, North America is projected to be the largest market for sleep apnea devices in 2018.
Rising healthcare expenditures, increasing obesity and unhealthy lifestyle practices along with expanded treatment options are anticipated to continue driving demand for sleep apnea devices. In view of this data, we believe, the latest development will help ResMed cash in on opportunities in this niche market.
Stress on Innovation
In order to maintain its leadership position in the sleep disordered breathing (SDB) market and to boost its sales base, ResMed is focusing on product development and innovation. In this regard, the company earlier unveiled its first minimal-contact full face CPAP mask — AirFit F30. Further, ResMed consistently sees a strong adoption of AirFit F20 full face mask and AirFit N20 nasal mask products globally.
Share Price Performance
Over the past year, shares of ResMed have outperformed its industry. The stock has rallied 17.5% against the industry’s decline of 3.2%.
Zacks Rank and Key Picks
ResMed currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Veeva Systems (NYSE:VEEV) , Omnicell, Inc. (NASDAQ:DXCM) and Illumina, Inc. (NASDAQ:ILMN) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell’s long-term earnings growth rate is projected at 11.8%. The stock carries a Zacks Rank #2 (Buy).
Illumina’s long-term earnings growth rate is expected at 23.4%. The stock has a Zacks Rank of 2.
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