ResMed Rides High on Q2 Revenue Surge, But GLP-1 Looms Large

Summary

ResMed’s Q2 2025 results show a 10% year-over-year revenue increase, exceeding expectations. However, the recent FDA approval of Eli Lilly’s GLP-1 drug, Zepbound, for sleep apnea treatment raises questions about ResMed’s future market share. ResMed CEO Mick Farrell remains optimistic, viewing Zepbound as a potential gateway to CPAP therapy.

Reliability and uptime matter in healthcare TrueNAS provides 24/7 support when it counts.

Main Story

Okay, so let’s talk about ResMed’s recent Q2 results. They’ve really had a pretty impressive run, haven’t they? The San Diego medical device company, you know, the one specializing in sleep apnea and respiratory solutions, they just announced a 10% jump in revenue hitting $1.28 billion. And that’s, like, above what analysts were expecting.

That growth, it seems, is largely thanks to a big increase in the demand for both their sleep health products and those digital health solutions they offer, which has just cemented their already strong position in the market. Their operating profit was up 52%! And get this, their net income jumped by a staggering 65%. I mean, that just screams efficiency and smart investments, wouldn’t you say?

However, it wasn’t all smooth sailing. Despite the great earnings, their stock actually took a bit of a dip after the announcement. One reason for this? The FDA gave the green light to Eli Lilly’s new GLP-1 drug, Zepbound, which is also for treating sleep apnea. It’s like, suddenly there’s a new kid on the block competing in ResMed’s backyard, and that, understandably, has investors a little on edge.

See, Zepbound is causing quite a stir in the medical world and among investors. Why? Because its approach to sleep apnea treatment is different than what ResMed, or anyone else, has been doing. We all know CPAP machines, right? ResMed’s bread and butter, they manage sleep apnea by keeping your airways open at night. But Zepbound, it tries to fix the actual causes of sleep apnea, mainly by helping people lose weight and improving their metabolism. A totally different angle, if you ask me.

During the earnings call, all the analysts were just zeroing in on this GLP-1 thing, particularly Zepbound. It dominated the conversation. Mick Farrell, the CEO of ResMed, didn’t shy away from it though. He seemed really positive, actually. He mentioned that these new GLP-1 drugs could actually work with their CPAP treatments, not against them. It’s a good point.

He thinks Zepbound, along with the growing popularity of sleep apnea tracking in smartwatches, could actually boost awareness and diagnosis of sleep apnea. A sort of gateway, maybe? Which would then lead to more people using their CPAP machines. He even went as far as to suggest that using the GLP-1 drugs alongside PAP therapy could be even more beneficial for patients! I mean, that would be quite the collaboration.

That said, Farrell was also realistic about how quickly new drugs take to gain traction. He mentioned how it usually takes drug companies months just to educate doctors and begin direct advertising. So, whether Zepbound ultimately helps or hurts ResMed, that’s going to be a waiting game, it seems.

The market’s reaction to all of this, it kind of highlights the complex and ever-changing medical device industry. It’s not static, is it? ResMed, while doing great right now, does need to keep adapting to the new treatment landscape and handle the potential hurdles that new treatments bring. I mean, the real long term effect of GLP-1s on ResMed’s market share is still up in the air, but they appear confident they can manage these changes.

And let’s not forget that ResMed’s core business is still strong. They’re focused on creating those cloud-connected medical devices – CPAP machines, masks, ventilators. Beyond that though, they’re also diving into digital health tech, which makes sense given the increasing importance of software and data these days. This focus on innovation and growth really does seem to position them well for the future, wouldn’t you say? As of February 3rd, 2025, the full impact of these GLP-1 drugs on the market, well, it’s still a big question mark. But ResMed’s management, they’re clearly confident that they can handle whatever comes next. We’ll just have to wait and see what happens.