ResMed (RMD) is the latest stock to get hit by concerns about the impact of anti-obesity drugs on its business. The selloff looks like a buying opportunity, Jacob Sonenshine writes in this week’s edition of Barron’s. Shares of ResMed have fallen 10% since June 21, when clinical trials showed that Eli Lilly’s (LLY) obesity drug Zepbound had reduced the severity of obstructive sleep apnea by 63% in a clinical trial. For sufferers of the condition, that was great news. For ResMed, which makes masks and continuous-positive-airway-pressure, or CPAP, machines, it raised concerns about future demand for its products. The stock market is notorious for overreacting to these kinds of headlines, and ResMed’s drop was an overreaction, the author says.
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