Health Check: Resmed investors toss and turn after 'disappointing' management guidance | Stockhead
Grumpy investors are down on Resmed's prospects, despite the sleep health giant's record quarterly numbers. Pic: Getty ImagesResmed posts record June quarter revenue, but investors can be a tough crowdImricor. . .
Grumpy investors are down on Resmed's prospects, despite the sleep health giant's record quarterly numbers. Pic: Getty ImagesResmed posts record June quarter revenue, but investors can be a tough crowdImricor snares its second US hospital clientPercheron announces a change at the topLike one of those chirpy early birds off to the gym at 5am, let’s start the week on a positive note. The good news forResMed (ASX:RMD)is that the sleep apnoea/sleep health giant doesn’t look to be affected by sagging US consumer confidence, unlike medtech peerCochlear (ASX:COH). In fact, Resmed has just posted “modest” price increases across its devices and masks, which broker Jarden quantifies as 8% (and 14% for the company’s super-dooper Airsense 10 device). “No one is immune from global inflation,” declared Resmed chairman and CEO Mick Farrell. Resmed on Friday posted quarterly revenue of a record US$1. 461 billion, up 9%, with net profit rising 14% to US$429 million. Management guided to current-year sales growth of 5-7% before any acquisitions, with 12-14% earnings per share (EPS) growth. But there was enough worrisome stuff for investors to wipe 8% ($2. 61) off the share price. The stock partially recovered this morning after investors got their third coffee into them. Some Resmed watchers expected more robust guidance, while UBS dubs the results as “operationally weaker with quality concerns due to tax and interest”. Resmed is also in the throes of recalling 168,000 of its Astral ventilators, because of a faulty third-party capacitator that has caused shorting. To conserve these scarce parts, the company has suspended manufacturing these units. Management expects full-year revenue impact of US$75 million and EPS burden of US15 cents. This impact is less than what analysts feared. Put in context, these numbers represent 1. 2% of expected revenue and EPS. ‘We’re only getting started’The timing of the US market re-entry of Resmed’s key rival Respironics after a more dramatic product recall remains unknown. Otherwise, Farrell remains cheery about Resmed’s prospects. “Resmed’s core markets remain largely underpenetrated,” he said. “For many years, awareness has been our greatest challenge and our greatest opportunity. “Now as wearables and GLP-1 [fat-busting drugs] gain traction, appreciation of the importance of sleep health is growing. ”Resmed shares have shed one-third of their value over the last year. But that’s a better showing than Big Four life sciences chumsCSL (ASX:CSL),Pro Medicus (ASX:PME)and Cochlear. This threesome reveals their numbers on Tuesday week. Meanwhile, shares inAdAlta (ASX:1AD)andAvita Medical (ASX:AVH)both leaped more than 30% this morning. Adalta shares were bolstered by further positive news about its mesothelioma trial. As for Avita, the burns and woundcare house gave an investor prezzo, but beyond that we are none the wiser. We’ll put the share spurt down to the market’s animal spirits. Imricor wins second US hospital clientOur rule of thumb is that three occurrences make for a definitive trend, but in the case ofImricor Medical Systems (ASX:IMR)we’ll settle for a second US customer win. Only two months after launching its US commercial push, the company has signed up Children’s Medical Center Dallas for its Northstar mapping and guidance system. These dashboards steer the company’s magnetic resonance imaging (MRI)-guided cardiac ablation devices, in a procedure known as interventional cardiac magnetic resonance (iMR) imaging. The hospital will launch a Northstar-guided iMR cardiac catheterisation program, delivering radiation-free procedures for children with congenital heart disease. The hospital falls under the auspices of Imricor Cardiovascular, which “harnesses the power of magnetic resonance to help physicians perform cardiac catheterisation procedures under real-time magnetic resonance guidance”. San Diego’s Rady Children’s Hospital signed up last month. That was shortly after the US Food and Drug Administration cleared Northstar and the company’s Vision-MR catheter for both adult and paediatric use. “Several additional US hospitals remain in the final stages of the purchasing process, with additional Northstar customers expected over the coming weeks,” the company said. Imricor reported a June quarter net loss of US$7 million, on revenue of US$61,000. But thanks to a recent capital raising, the company had a June-end cash balance of US$60. 5 million. Percheron drafts heavyweight CEOThe CEO revolving door continues to spin across the life sciences sector, with formerArovella Therapeutics (ASX:ALA)CEO Dr Michael Baker replacingPercheron Therapeutics (ASX:PER)chief Dr James Garner. Having headed Percheron for three years, Garner is taking a new position overseas. Percheron has changed its spots after the failure of its Duchenne muscular disease program in late 2024, having acquired an oncology program (a phase II-ready checkpoint inhibitor). In January 2025 the company changed its name from Antisense Therapeutics to Percheron, which means ‘draught horse’ in French by the way. Arovella is all about cancer cell therapies. Baker departed in early May after a board coup by biotech man about town David Williams, former Antisense CEO andDimerix (ASX:DXB)chairman Mark Diamond and formerNeurizon Therapeutics (ASX:NUZ)chief Dr Michael Thurn. Meanwhile,Imugene (ASX:IMU)executive chair Paul Hopper stressed a business-as-usual approach at the cancer drug developer after CEO Leslie Chong resigned for personal reasons. “Our clinical operations team continues to work closely with trial sites across Australia and the US to drive patient enrolment and evaluate incoming data,” Hopper told holders today. “Additionally, the recent appointments of Dr Charmaine Gittleson and Michael Kotsanis to our board add valuable clinical, regulatory, and commercial depth. ”Gittleson was CSL’s chief medical officer and is Percheron’s chairman, while Kotsanis formerly headed generic drug-cum-women’s health specialistAcrux (ASX:ACR). Yep: it’s one of those sectors where everyone knows each other. Garner remains Percheron CEO until the end of the month and then becomes a non-executive director. Baker starts on October 5. At Stockhead, we tell it like it is. While Dimerix and Neurizon are Stockhead advertisers, the companies did not sponsor this article.