Shares of ResMed (RMD) and Encourage Medical Methods (INSP) fell Monday as the businesses behind merchandise to deal with sleep apnea confronted a brand new risk from weight-loss medication.

On Friday, Eli Lilly (LLY) reported that the Food and Drug Administration (FDA) authorized its weight problems drug, Zepbound, as the primary and solely medication to deal with moderate-to-severe obstructive sleep apnea in adults with weight problems.

Lilly famous that the FDA choice got here following Part 3 clinical trials that confirmed Zepbound was about 5 occasions more practical than placebo in decreasing respiration disruptions on sufferers not on a constructive airway strain (PAP) gadget that helps them when sleeping.

ResMed Chief Medical Officer Carlos Nunez stated that constructive outcomes from weight-loss medicines give medical doctors extra choices in treating sleep apnea, and people medication will seemingly be used «concomitantly with constructive airway strain (PAP) remedy,» resembling merchandise provided by his firm.

Even with at this time’s roughly 4% slide, shares of ResMed have added a couple of third of their worth this yr. Encourage Medical Methods shares, which fell 1.4% in latest buying and selling, have misplaced 9% in 2024. Amongst analysts adopted by Seen Alpha, three fee ResMed a «purchase» and 4 a «maintain,» and 7 name Encourage Medical Methods a «purchase» and two a «maintain.»