Apnimed data brings competitive threat to ResMed, says RBC Capital

RBC Capital says Apnimed released the topline results from its SynAIRgy Phase III trial of AD109, which showed the prospective once-daily oral pill for obstructive sleep apnea met its primary endpoint, with a mean reduction in Apnea-Hypopnea Index 55.6% from baseline. Other secondary and exploratory endpoints included reducing sleep apnea disease severity in 51.2% of participants and 22.3% of participants achieved complete disease control, the analyst tells investors in a research note. RBC expects that successful commercialization of AD109 would likely have a negative impact on ResMed’s (RMD) addressable market as AD109 “could offer a less invasive, more user-friendly and viable alternative” to positive airway pressure therapy. The firm says ResMed “now has a number of competitive threats on the horizon,” including the return of Philips in the U.S. if it can satisfy the consent decree requirements as well as the impact of GLP-1s and of AD109. The firm has a Sector Perform rating on ResMed. The stock morning is down 2% to $248.98.