(Reuters) – ResMed 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 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)
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