Morgan Stanley sees ‘modest’ earnings impact to ResMed from Apnimed

Morgan Stanley analyst David Bailey keeps an Overweight rating on ResMed (RMD) with a $286 price target after Apnimed provided topline results as part of its Phase 3 trial for AD109, focused on the treatment of obstructive sleep apnea. Participants treated with AD109 recorded a mean Apnea-Hypopnea Index reduction of 55.6% from baseline, the analyst tells investors in a research note. The firm believes AD109 appears to focus on patients who are unable or refuse to tolerate continuous positive airway pressure, or CPAP. Further, patients who record an AHI less than 10 appear to be those with mild to moderate sleep apnea, the analyst tells investors in a research note. On balance, Morgan Stanley sees a “modest” potential earnings impact for ResMed based on current data from Apnimed.