SAVE Trial Negative for the CPAP Space and ResMed (RMD) - Northland Capital Markets

August 29, 2016 10:29 AM EDT
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Price: $61.37 +1.71%

Rating Summary:
    6 Buy, 8 Hold, 4 Sell

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    Up: 21 | Down: 18 | New: 19
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Northland Capital Markets analyst Suraj Kalia said long-term follow-up results from the SAVE study is a negative for the CPAP space. The analyst said totality of data from RCT's in the CPAP space seems to be casting doubt on the true clinical utility of CPAP in "hard endpoints" such as mortality, NYHA classification, BP, etc.

commented, "This study, sponsored by Philips, was conducted on 2,717 patients between ages of 45 - 75 yrs, randomized 1:1 (CPAP + usual care: Usual care) with a primary composite end point of death from cardiovascular causes, myocardial infarction, stroke, or hospitalization for unstable angina, heart failure, or transient ischemic attack. Secondary end points included other cardiovascular outcomes, health-related quality of life, snoring symptoms, daytime sleepiness, and mood. In the CPAP group, the compliance was 3.3 hrs/night. After mean f/u of 3.7 yrs,
a primary end-point event had occurred in 17% in the CPAP group & 15.4% in the usual care group (p = NS). No significant effect on any individual or other composite cardiovascular end point was observed. CPAP significantly reduced snoring and daytime sleepiness and improved health-related quality of life and mood."

The notion that the SAVE study results will have no implications for ResMed is inaccurate in the firms' view. "One can reasonably assume that if the body of evidence on hard endpoints was positive, the entire industry would be pushing to "increase" referrals. Now that the results are negative, one has to wonder how the referral channel will be impacted over time," the analyst commented.

The firm reiterated an Underperform rating and $50 price target on ResMed (NYSE: RMD).

For an analyst ratings summary and ratings history on ResMed click here. For more ratings news on ResMed click here.

Shares of ResMed closed at $69.03 yesterday.



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