Looks like some "investors" haven't really done their homework....

Looks like some "investors" haven't really done their homework.

* There are over 2 billion people worldwide suffering from sleep apnea, chronic obstructive pulmonary disease, respiratory insufficiency due to neuromuscular disease or insomnia.

* ResMed is the global leader in digital health solutions with over 17 billion nights of medical data in the cloud and over 23.5 million 100% cloud connectable medical devices sold into over 140 countries worldwide.

* Resmed are the clear market leader in sleep apnea, a huge and growing market with over 1 billion people impacted globally.

* Big pharma's current focus is on GLP-1 medications.

* Resmed are tracking a cohort of over 0.5 million patients with prescriptions for both GLP-1 medications and positive airway pressure therapy. This data can be reviewed on their website. What have they found? That some of the market thought that patients on GLP-1 medications would be less likely to start positive airway pressure therapy. Resmed stated that this was and still is not the case (read the Earnings Call transcript below to understand why). But in summary, their analysis of over 529,000 patients with GLP-1 prescriptions shows that not only is there not a reduction in the propensity to start positive airway pressure therapy, it is the exact opposite.

* For patients who have been prescribed a GLP-1, there is an increase of 10% of the absolute percentage of patients that commence positive airway pressure therapy. That's a potential increase of 10% into the funnel folks!! For example if 75% patient new starts in a given period increase by that 10% to 85% that's a bigger market every year. Their thoughts are that these GLP-1 medications will lead to greater growth of patients coming into their health care system over time. Just look at how many patients they have that they can track in their cohort. Resmed's data (529,000 plus patients) is showing that with that cohort of patients. Their goal is to leverage the demand that's coming from this new megatrend of GLP-1's.

* Another important thing to note is that these GLP-1s are the latest generation medications.

* Now with regards to the Eli Lilly SURMOUNT-OSA study, see the results in the reference below.

* Note: The study was a small trial, less than 500 patients.

* Weight loss observed at 52 weeks across the two studies was almost 20% in a patient population comprised of 70% males & 30% females. 70 males because men are known to achieve less weight loss with that therapy than females. That metric was sort of well-known from prior studies which also correlated to a significant AHI reduction which again was what was thought to be expected based on previous studies results.

* Resmed are tracking 529,000 patients in their cohort.

* Listen to what the Primary Investigator on the study Professor Atul Malhotra and Dr. Carlos Nunez, Resmed's Chief Medical Officer had to share. Professor Malhotra was asked what's the best therapy to treat sleep apnea. Is it, a, weight loss? Or is it b, CPAP.

Have a listen.

https://podcasts.apple.com/us/podcast/awaken-your-best/id1677397335?i=1000637045705

References:

https://investor.lilly.com/news-releases/news-release-details/tirzepatide-reduced-sleep-apnea-severity-nearly-two-thirds

and

https://finance.yahoo.com/news/q2-2024-resmed-inc-earnings-173828955.html

Bargain hunting opens up once again.

Bigger picture folks!

Tony