ResMed (RMD) 44th Annual J.P. Morgan Healthcare Conference summary

Business performance and market overview

• Achieved $5.3 billion in trailing 12-month revenue, with net operating profit margins above 30% and strong global distribution across 140 countries.

• Software business, including Brightree and MEDIFOX DAN, represents 12% of revenue, expanding beyond hardware into healthcare solutions.

• Strong cash flow of $1.8 billion in the last 12 months, supporting R&D, share buybacks, dividends, and M&A.

• Maintained resilience through global crises, including COVID-19 and supply chain disruptions.

• Large, underpenetrated markets in sleep and breathing health, with less than 20% of OSA patients diagnosed or treated in the US and under 10% globally.

Industry trends and innovation

• Big Tech (Apple, Samsung, Oura, etc.) is integrating sleep apnea detection into wearables, expected to expand further by 2026.

• Key megatrends such as digital health, wearables, and GLP-1 medications are increasing awareness and detection of sleep apnea.

• AI-enabled devices and digital health tools, such as the AirTouch mask line and Dawn digital concierge, are enhancing patient adherence and experience.

• Real-world evidence shows untreated sleep apnea increases mortality by 37%, with AI and digital tools supporting better outcomes.

• Gamification and data access through apps like myAir drive patient engagement and adherence.

Strategic initiatives and ecosystem expansion

• Acquisitions of Virtuox, Ectosense, and Somnoware strengthen home sleep apnea testing and software capabilities.

• 11 million patients use the myAir app, with 24 billion nights of medical data and 405 API calls per second in the ecosystem.

• Education initiatives for primary care physicians have reached 60,000 CME downloads, with 77% planning to change protocols for sleep apnea management.

• Targeting high-volume GLP-1 providers and expanding home testing access to streamline patient funnel.

• Manufacturing expansion in the U.S. (Atlanta, Indianapolis) aligns with Made in America initiatives and doubles capacity.