Lilly’s Weight-Loss Drug Takes Down ResMed, Inspire — Again

ResMed (RMD) and Inspire Medical Systems (INSP) stocks tumbled Monday after Eli Lilly (LLY) said its weight-loss drug reduced sleep apnea events in people with obesity.

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But analysts say there’s still room for ResMed’s CPAP — continuous positive airway pressure — machines and for the Inspire implant. Both treat obstructive sleep apnea, a phenomenon where people momentarily stop breathing while asleep.

After a year, 43% of patients who received Lilly’s tirzepatide had their sleep apnea resolved, Needham analyst Mike Matson said in a report. In comparison, 51.5% of patients treated with a CPAP machine met the bar for disease resolution.

Tirzepatide patients also had a 55% to 63% reduction in nighttime sleep apnea events. ResMed, though, notes many patients still had enough events to require a CPAP machine. And William Blair analyst Margaret Kaczor Andrew says most doctors expect weight-loss drugs and CPAP to be the best combination for patients.

“Thus, we estimate the impact of approval on the CPAP market to be minimal, as it may bring more undiagnosed patients into the channel, something that clinicians spoke to seeing in the field already,” she said in a report.

But, before the opening bell, ResMed stock toppled more than 8% to 188.16, while shares of Inspire Medical Systems skidded more than 10% to 144.81. Eli Lilly stock rose a fraction to 890.24.

More to follow.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

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