Citi downgraded ResMed to Neutral from Buy with a price target of A$30, down from A$36. The SURMOUNT study showed that between 40%-50% of patients on tirzepatide had obstructive sleep apnea remission, the analyst tells investors in a research note. The firm says the data indicates that GLP-1 are a viable treatment option for the 70% of OSA patient population that are obese. Given the GLP-1 dose escalation period of 20 weeks, Citi estimates continuous positive airway pressure therapy will continue to be prescribed along with GLP-1s, at least at the start. However, its forecast assumes a rebasing of the CPAP device market over several years combined with Philips gradually regaining 20% market share, of which 10% from ResMed.
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