Resmed trial disappoints, but thesis is intact

Preliminary results from the SERVE-HF trial using adaptive servo-ventilation (ASV) therapy in patients with chronic heart failure did not meet its survival endpoint and in fact, showed a safety signal in this patient population. While disappointing and likely to see shares trade lower overnight, we estimate the earnings impact from this patient population is nominal (less than 3%), it does not affect core obstructive sleep apnoea patients and the trial’s success was not backed into our estimates; thus, our thesis remains intact. We make modest changes to our estimates, with our DCF/PE/SOP-based target price decreasing to A$9.73. We maintain our Add rating.


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Scott Power
Senior Analyst
Morgans

Senior Analyst at Morgans covering healthcare, life science, telecommunications, technology and media. I've spent the last twenty years investing in and researching emerging companies and have developed a wide network of contacts across these...

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