ResMed (RMD) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Global market opportunity and growth drivers

• Sleep apnea affects nearly 1 billion people globally, with significant underdiagnosis and low treatment penetration, especially outside the US and Western Europe.

• US penetration is 15-20%, Western Europe around 10%, and other regions below 5%, leaving substantial growth runway.

• Double-digit growth is seen in emerging markets, particularly China, driven by increased awareness and diagnosis.

• Big Pharma and Big Tech are entering the space, expected to drive further patient flow and market expansion.

Market dynamics and competitive landscape

• Market growth rates have normalized to pre-pandemic levels: mid-single digits for devices, high single digits for masks and accessories.

• The company is outpacing market growth through targeted demand generation and leveraging cloud-connected devices.

• Competitor recall has led to significant share gains, with new product launches and strong channel engagement supporting growth.

• Major competitor Philips is expected to regain up to 20% share over five years but not reclaim leadership.

Technology, innovation, and product strategy

• Over 26 million cloud-connected devices in 140 countries have generated 19 billion nights of medical data, enabling advanced patient engagement and compliance tools.

• The AirSense 11 platform offers a lower cost, higher price point, and improved patient adherence through digital engagement, with myAir app adoption rates doubling to 50-60%.

• New mask launches, such as the F40, and integrated device-mask development drive both technical and brand loyalty advantages.