ResMed falls as Wolfe Research downgrades to 'underperform' on GLP-1 risks

ResMed

18/09/2024 15:18

** Shares of medical device maker ResMed  RMD.N  fall 6.1%
to $235.65
    ** Brokerage Wolfe Research downgrades to "underperform"
from "peer perform", sets PT of $180
    * Expect significant risk of disruption in patient demand
next year as FDA likely to approve Eli Lilly's  LLY.N 
weight-loss drug Zepbound for sleep apnea in Q4 - Wolfe
    ** ResMed manufactures continuous positive airway pressure
machines (CPAP) machines - a type of ventilator that helps
manage sleep apnea
    ** The disorder causes breathing to repeatedly stop or
become shallow during sleep
    ** Brokerage cites survey that says 50% of doctors expect to
reduce prescribing CPAP machines for sleep apnea due to
introduction of GLP-1 drugs like Zepbound
    ** Stock up ~36% YTD vs ~18% increase on S&P 500 index
 .SPX 


 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com))