Resmed: Losing heart

Roger Montgomery

Montgomery Investment Management

Resmed (ASX: RMD) has released the preliminary results of the Serve-HF trail for patients with Chronic Heart Failures. The trial identified an increased risk of cardiovascular mortality for patients that received ventilation therapy. The recent launch of Resmed’s new flow generator platform has been strongly received by the market. But in accordance with our somewhat uncompromising investment process, we have gradually reduced the position as the share price appreciated strongly. While the fundamentals of Resmed’s core business might remain sound, the company’s prospects have dimmed on this result. While sales in the space represented a smaller part of revenue, the margins were high. The possible shuttering of this business could have a material impact on the company’s profitability in the more immediate term. (VIEW LINK)

Roger Montgomery
Founder and Chairman
Montgomery Investment Management

Roger Montgomery founded Montgomery Investment Management in 2010. Roger has more than three decades of experience in investing, financial markets and analysis. Roger also authored the best-selling investment book,

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment