ResMed Inc. (NYSE:RMD) Q4 2023 Earnings Call Transcript

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And so that’s how we’ve gained share in the mask side and maintained that share. So I — there is a better together in that when you have an AirSense 10 or an AirSense 11, the mask leak data are more accurate. The interoperability of an AHI calculation or a leak calculation are more accurate. So we certainly push that angle and we do get some extra share for through the device, but it’s not as material as the fact that the masks themselves are just excellent, which I think speaks to the sustainability there. So that strong resupply, as you said, 19% growth in the U.S., 14% growth in Europe, Asia and beyond, where we don’t have that sort of automated resupply that we have with Brightree ReSupply Solutions in the U.S. that’s been from hard work from our teams in Asia, Latin America, and Europe on patient outreach, subscription programs and connecting directly to that end user.

So I think post-COVID people care about respiratory health, respiratory hygiene and taking care of themselves outside the hospital, and we’ve been able to leverage that trend in the consumer side as well. So I think it’s sustainable, and I don’t think although it may be catalyzed somewhat by our increased device share, I think our market share is on its own extraordinary and due to the intrinsic products. The second question around GLPs, yes, look, there’s a lot of moving parts. I was just reading in the press today that many U.S. employers are banning coverage of GLP-1s due to cost. European governments have all said no from the government insurance side. These things are incredibly expensive about $1,000, well, anywhere from $800 to $1,200, $1,000 a month.

So I think there are three factors that’ll mitigate GLPs in the space. One is cost, two is adherence, and three is side effects. I’ll take them really quickly in order. If you look at cost, take a 40-year old person who’s on therapy full time for 40 years, 40 times, 12 times a $1,000 is $480,000 lifetime cost for that patient on a GLP-1 from 40 to 80 lifetime cost. If you take that same patient and say, look, let’s treat them with CPAP, right? First year maybe a $1,000, and then 39 years of let’s take a really strong case where you get four masks a year and they’re all full face masks. That’s about thirteen and a half thousand dollars. So it’s 35 times more expensive to go with a GLP-1. It’s just like what’s the ROI here, that’s cost. On adherence, the data out there are about 33% adherence at one year through the clinical trials on GLP-1s.

That’s incredibly low. We get 87% adherence at 90 days, and we hold it pretty strong there. So I think adherence is a big deal. And third is side effects. Reading thyroid, pancreas, kidney, these cancer, these major side effects and minor ones like nausea, constipation, and pain. Our biggest side effect as President Biden had a little mark on his face and he was asked about it, and it was from his CPAP. Look, I think it’s a long road to play out here. I think it’s frankly good marketing around the area of obesity and it can drive patients into the funnel. But I don’t think it’s going to be a major impact on patients because we’ve got 936 million of them worldwide and we need them to get into the funnel. If they come in the funnel because they tried a pill and it didn’t work.

That’s good for us too.

Operator: Thank you. [Operator Instructions]. Our next question is coming from Suraj Kalia from Oppenheimer. Your line is now live.

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