Medical device company ResMed Inc. RMD recently sponsored a study which shows potential treatment of obstructive sleep apnea (OSA) in patients with untreated central sleep apnea (CSA). According to the study, CSA patients are more responsive toward adaptive servo-ventilation (ASV) therapy when they switch from continuous positive airway pressure (CPAP) therapy.
Notably, OSA is a kind of sleep disorder in which the throat muscles relax, block the airways and stop the flow of breath during sleep. CSA is another sleep disorder in which the brain fails to transmit the ‘breathe’ signal to the muscles that control breathing during sleep.
The analysis compared compliance rates of 198,890 patients using anonymous, aggregated telemonitoring data from a U.S. positive airway pressure (PAP) therapy database. All patients in the analysis received CPAP via ResMed's AirSense 10 or ASV via ResMed's AirCurve 10 devices. In particular, three groups of patients – "CPAP-only," "ASV-only" and Switch" that started on CPAP and switched to ASV – were evaluated.
The 90-day compliance rates for the CPAP-only and ASV-only groups were 73.8% and 73.2%, respectively. In the Switch group, patients beginning on CPAP had the lowest initial compliance rate of 62.7% which improved to 76.6% after switching to ASV. Further, ASV reduced obstructive and central events.
The study quite clearly demonstrated the efficacy of ASV over CPAP. The market for CSA is gradually expanding and gaining importance over time. Currently, CSA has been linked to a wide range of diseases. Especially, this breathing disorder during sleep has been seen to develop among OSA patients who are on CPAP and have a history of ischemic stroke or have taken opioids for chronic pain.
Taking the growing significance of the global CSA market into consideration, we believe the latest development at ResMed is a strategic fit. According to a report by Markets and Markets, the sleep apnea devices market is expected to reach a worth of $6.70 billion by 2021 from $4.59 billion in 2016, growing at a CAGR of 7.8%. Thus, the company has considerable scope for expansion in this niche market.
ResMed AirMini – which was recently cleared by the FDA – is expected to be launched at the end of fiscal 2017. The device is a tiny portable travel PAP with ResMed's best-in-class comfort features. AirMini is intended to be a secondary device for travel and complements the AirSense 10 platform.
The company has also launched the AirFit range of masks, such as AirFit N20 nasal mask andAirFit F20 full face mask recently. In the area of sleep help and wellness, the company is also making progress with the new joint venture called Sleep Score Labs.
Zacks Rank & Key Picks
Currently, ResMed carries a Zacks Ranks #4 (Sell). Better-ranked stocks in the broader Medical - Products space include Hill-Rom Holdings, Inc. HRC, Hologic, Inc. HOLX and ZELTIQ Aesthetics, Inc. ZLTQ. While Hologic sports a Zacks Rank #1 (Strong Buy), Hill-Rom and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hill Rom gained 33.43% in the last one year compared with the S&P 500’s gain of 13.75%. The company reported a stellar four-quarter positive average earnings surprise of 3.11%.
Hologic rose 20.52% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise is a positive 4.16%.
ZELTIQ Aesthetics gained 97.07% in the past one year, surpassing the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
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