ResMed Beats Estimates, Plays Down Ozempic Risk

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Post on Oct 25, 2024

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ResMed's Got the Wind in its Sails, but Ozempic is a Headwind

ResMed, the sleep apnea giant, is having a pretty good year. They just crushed their earnings estimates for the first quarter of 2023, sending their stock soaring. But there's a wrinkle in the bedsheets: everyone's talking about the potential impact of Ozempic, the diabetes drug that's become a popular weight-loss tool.

Let's break it down. ResMed makes sleep apnea machines, those awesome contraptions that help people breathe better at night. And, like a lot of us, people with sleep apnea often struggle with weight. This is where Ozempic comes in. This drug, made by Novo Nordisk, has become a sensation because it helps people shed pounds. But some folks think it could cut into ResMed's business, because, you know, if you lose weight, you might not need a fancy sleep apnea machine anymore.

ResMed, however, is playing it cool. Their CEO, Mick Farrell, says he's "not worried" about the impact of Ozempic. He points out that people with sleep apnea are often overweight for reasons other than simply having too much food. Things like genetics and hormones can play a role. He's also got a point when he says sleep apnea isn't just a weight problem - it's a health issue that can lead to serious complications like heart disease and stroke.

So, should ResMed be worried? It's too early to say for sure. While some people might lose weight and no longer need their sleep apnea machines, many others will still need them, regardless of their weight. Plus, ResMed is constantly innovating with new products that can help people with sleep apnea, no matter what their weight is.

The bottom line: ResMed is doing well, but it's keeping a close eye on the Ozempic situation. This is a story that's worth watching, folks. It's a battle between weight loss and health, and the outcome could have a big impact on the sleep apnea industry.