"That's great...mark the garbage down and unload it on the public..."
Seems to be the way in CPAP land. Ever heard of the Respironics M Series? Google it, sounds like a high margin piece of $hit. They leak water onto furniture, loud, stop working in the middle of the night, they drop patient history, and they practically give them away to sleep labs.
Used to like CPAP in general, now I'm LONG ON RMD. Way LONG.
On MA, IMNSHO both RESP and RMD are too expensive for J&J, and each other. And both are too overvalued for a private equity buyout. Look at J&Js MA history. They don't buy companies full of fat. They buy well run companies with value and growth potential.
You better believe that J&J will be in CPAP some day. They probably already know their entry point and strategy. Probably know for a decade. They'll let the R&D outfits slug it out for now. I predict that reimbursement for home testing is going to shake the hell out of the CPAP marketplace, maybe drive the blower boxes OTC. When that happens I hope I'm not long CPAP.