Investment Thesis
With the ventilator shortage driving the demand for its respiratory care devices and its home-based therapeutics gaining traction amid the infection fears, ResMed Inc. (RMD) is awaiting a two-fold benefit from the COVID-19 pandemic. The short-term revenue bump due to ventilator demand could dissipate with the epidemic. However, the company’s core market for sleep apnea is largely untapped with the widespread and under-diagnosed disorder requiring long-term therapy. As the patients adapt to a new normal of home-based therapies after the pandemic, ResMed, with its focus on out-of-hospital care, is prepared to