Medical technology company ResMed continues to expand demand for its sleep apnoea devices, defying predictions growth in weight-loss drugs will undercut its market.
The Sydney-founded, California-domiciled company on Friday AEST reported revenue grew by nine per cent in the quarter ended June 30 to $US1.22 billion ($A1.88 billion), roughly in line with analyst expectations.
That brought revenue for the financial year to $US4.7 billion - an 11 per cent increase on the previous 12 months.
The result was driven by low cost growth and strong ongoing demand for ResMed's CPAP devices, which provide a wearer with a constant flow of air to prevent airway obstructions that cause snoring and reduce quality of sleep.
Core sleep apnoea devices, which account for more than half of all revenue, grew by more than six per cent in the quarter.
Contrary to claims popular weight loss drugs such as Ozempic and Wegovy would reduce demand for the devices, ResMed chief executive Mick Farrell believes greater interaction with the health system would drive more sleep apnoea sufferers to its products.
"Some people were thinking these drugs are going to make people skinny and healthy and they're not going to look for therapy, they won't start it. But it's the opposite," he told AAP.
ResMed shares plunged 13 per cent on the ASX in June when trials showed pharmaceutical company Eli Lilly's Ozempic competitor Zepbound reduced sleep apnoea severity.
But the short sellers have since been kept at bay.
A ResMed study of more than 800,000 patients who used GLP-1 weight loss drugs found they were 10.7 per cent more likely to begin using CPAC therapy.
Once they visited a doctor, a patient was much more likely to get diagnosed with sleep apnoea and put onto a ResMed device, Mr Farrell said.
"For those who are attracted, who have obesity or diabetes, what we're seeing is they're more motivated patients," he said.
"It's been a net tailwind for our industry.
More exciting for Mr Farrell is the growing trend of health tech entering into daily life through smart devices.
Samsung's latest smart watch has an in-built oximeter, which can detect sleep apnoea, and further drive potential patients to ResMed.
"There's no question our biggest competitor is lack of awareness," he said.
"I think we're going to see a lot of people finding out from their wearable, 'wow I suffocate at night, I've got problems'.
"This could be many millions, tens of millions of patients that could be coming into our funnel over the coming years."
ResMed's full-year profit grew 14 per cent to $US1.02 billion.
The company paid shareholders a quarterly dividend of US53c per share.
ResMed shares were buying $32.39 on the ASX before markets opened on Friday, up 27.6 per cent since the start of 2024.
