KloggsRational thinking and patience to look at outcomes is not...

Kloggs
Rational thinking and patience to look at outcomes is not something that comes naturally to stock market investors......I read the transcript from the MS Healthcare conference, and mgmt don't seem overly concerned with these drugs, and if anything (based on my reading) seem to think that this will introduce a whole new cohort of potential patients/users who seek prescriptions for these drugs, but also end up with a recommendation to use a sleep apnea device.

Also the use of the drugs (at least initially) will be somewhat impacted by adoption (not all can take it nor do most want to have the side effects) as well as costs (drug companies are not changing their economic model anything soon so these are not going to be cheap).

As I said upfront however, investors will shoot first and ask questions later, and to me (based on that transcript), it seems like they believe they can retain market share, they are able to sell a cheaper machine at a higher cost (AirSense 11), and their users/patients are increasingly using more of their tracking tools which means they are likely to be locked into their infrastructure/equipment for a longer period of time (i.e. not jumping around to the newest/latest fad).