ResMed beats quarterly profit estimates on demand for sleep disorder devices

ResMed

30/01/2025 22:18

Jan 30 (Reuters) - ResMed  RMD.N  beat Wall Street
estimates for second-quarter profit on Thursday, driven by
strong demand for its devices used to manage sleep apnea, a
common sleep disorder.  
        ResMed makes continuous positive airway pressure
machines (CPAP), which offer a non-invasive treatment option for
sleep apnea characterized by brief interruptions of breathing
during sleep.
    Some analysts expect demand for ResMed's CPAP devices to be
disrupted by the U.S. approval for Eli Lilly's  LLY.N 
weight-loss drug Zepbound to treat the condition in overweight
or obese adults.
    Lilly's Zepbound, which belongs to the widely popular class
of drugs known as GLP-1 receptor agonists, had helped ease
breathing difficulties in two trials involving 469 patients with
moderate-to-severe obstructive sleep apnea.
    "ResMed is well-positioned to capitalize on the
once-in-a-generation opportunities we have with the recent
introduction and adoption of consumer wearables that track sleep
health, as well as use of GLP-1 therapies," CEO Mick Farrell
said, adding that he expects these developments to drive more
patients to use their devices.
    There are about 30 million adults in the U.S. living with
this condition of which only 6 million are diagnosed, according
to the American Medical Association.
    ResMed's second-quarter revenue rose 10% to $1.28 billion,
driven by increased demand for its sleep devices and the masks
portfolio.
    Analysts on average had expected quarterly revenue of $1.27
billion, according to data compiled by LSEG.
    The company posted an adjusted profit of $2.43 per share for
the quarter ended Dec. 31, compared with estimates of $2.32 per
share.
    Shares of the company fell 1% to $254.89 in extended
trading.

 (Reporting by Mariam Sunny in Bengaluru; Editing by Maju
Samuel)
 ((Mariam.ESunny@thomsonreuters.com;))