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ResMed RMD has achieved impressive growth over the past year, with its shares rallying 25.6%. It has outperformed the industry’s 13.1% rise and the S&P 500 composite’s 15.7% gain.
Presently carrying a Zacks Rank #2 (Buy), the renowned medical equipment company continues to gain from its widely adopted mask portfolio and strong device business. Expanding the Respiratory Care business with cutting-edge technologies and the momentum in the SaaS (Software as a Service) business are also highly encouraging.
San Diego, CA-based ResMed holds a major position as a designer, manufacturer and distributor in the worldwide market for generators, masks and related accessories for the treatment of sleep-disordered breathing (SDB) and other respiratory disorders. The company’s software solutions are geared toward the fragmented and underserved OOH (out-of-hospital) care market, where it sees significant opportunities for innovation. Acquisitions are also a key part of ResMed’s ongoing success.
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Factors Favoring RMD’s Growth
The rally in the share price can be linked to the strong demand for the company’s market-leading mask portfolio, benefiting from a competitor’s recall as well as ongoing product development. ResMed has successfully introduced a full suite of masks in its AirFit, AirTouch and other ranges while offering advanced and expanded integrations of its therapy-based software solutions, such as AirView, to promote greater patient adherence. AirFit F40 is performing extremely well in the U.S. market. In the second quarter of fiscal 2025, the company launched its breakthrough CPAP (continuous positive airway pressure) mask innovation, AirTouch N30i, in select markets.
Masks and other businesses revenues increased 11% year over year globally, including 12% growth in the United States, Canada and Latin America. The ongoing rollout of ResMed’s Brightree ReSupply and Snap technologyhas supported ResMed’s U.S. market growth, with Snap set to become compatible with all HME (Home Medical Equipment) management platforms in 2025. Meanwhile, Device sales remain robust, driven by the combined availability of both AirSense 10 and AirSense 11 sleep devices. ResMed is gearing up to roll out AirSense 11 in more countries throughout 2025 after launching it in India this January.
In Respiratory Care, the company is investing in newer-to-market technologies such as home-based, high-flow therapy (HFT) for treating chronic obstructive pulmonary disease (COPD). By actively generating clinical evidence and economic outcomes, ResMed aims to support the broader adoption of these technology innovations for treating lung disease at home. Furthermore, ResMed is advancing multiple digital health technology initiatives, investing in AI-driven capabilities and customer-facing AI products within its ecosystem.