ResMed (RMD) UBS Global Healthcare Conference 2024 summary

Financial performance and growth outlook

• Achieved double-digit top and bottom line growth in Q1 FY2025, with over 300 basis points improvement in gross margin and EPS growth above 30% year-on-year.

• Strong free cash flow, exceeding $300 million last quarter and $1 billion last year, supporting increased dividends and share buybacks.

• Ongoing investments in R&D (7% of revenue) and SG&A (28% of revenue) to drive innovation and operational efficiency.

• Forward-looking statements highlight continued leverage of digital health and consumer tech trends for sustained growth over the next 1–5 years.

• Exploring tuck-in acquisitions in the $300–$600 million range to accelerate growth in sleep health and home health technology.

Industry trends and demand drivers

• Anticipates a significant increase in patient flow due to GLP-1 drugs and consumer tech devices (e.g., Samsung and Apple watches) detecting sleep apnea.

• Expects gradual but accelerating demand as pharma and tech companies drive awareness and patient engagement.

• New pharma indications (e.g., tirzepatide for OSA) could catalyze demand as early as Q1 2025.

• Home sleep apnea testing and remote setup capabilities have scaled globally, with peer-reviewed evidence supporting equivalent or better outcomes compared to in-lab testing.

• Digital health tools, AI-driven patient engagement (e.g., Dawn), and cloud-based management are central to capturing and converting new demand.

Patient adherence and product innovation

• Real-world data shows patients on GLP-1s with OSA are more likely to start and adhere to CPAP therapy, with higher resupply rates at one and two years.

• New AirTouch N30i mask features fabric-backed silicone for improved comfort and adherence, with early feedback suggesting a potential revolution in mask technology.

• Regular mask replacement (three to four per year) is linked to optimal therapy adherence and health outcomes, but current averages remain below this level.

• Resupply technology (Brightree, SNAP) and consumer engagement strategies are being expanded to increase mask and device replacement rates.

• Re-PAP (device replacement) opportunity remains, especially post-pandemic, with efforts to inform and engage consumers and leverage regulatory cycles.