ResMed shares drop after downgrade highlights risks from weight-loss drugs and Philips re-entering the U.S. sleep device market.
ResMed (RMD) shares declined in premarket trading after Morgan Stanley downgraded the stock. Analysts cited growing competition from Philips (PHG) as it prepares to re-enter the U.S. sleep-device market, alongside headwinds from GLP-1 weight-loss drugs reducing demand for respiratory devices.
The downgrade follows recent industry shifts, including Philips’ regulatory settlements allowing it to resume sales. GLP-1 drugs, used for diabetes and obesity, may also lower sleep apnea cases, impacting ResMed’s core business.
Premarket trading saw RMD shares fall, reflecting investor concerns over the dual threats.