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You are here: Home / Archives for October 2011

Resmed has become a post FY12 Story

October 28, 2011 by Randy Clare Leave a Comment

ResMed quarterly falls short on flow generator sales – Company exiting less profitable market segments – Stockbrokers cautious as move may impact on top line growth – Opinions on ResMed remain divided

By Chris Shaw

Sleep disorder group ResMed lifted 4Q sales by 12% to US$315 million but this result was behind the market consensus estimate of $327 million. The shortfall reflected a decline in US flow generator sales, partly the result of ResMed deciding to exit less profitable market segments.

On the positive side, Deutsche Bank notes mask sales for ResMed remained strong during the period, rising by 17% when adjusted for foreign exchange moves. With management moving out of low margin market sectors, gross margins were higher than expected.

But for Deutsche Bank these positives are offset by the unexpected contraction in US device sales in the period. Deutsche Bank suggests this implies increased risk of price competition and distributor market power, something that could be made worse by competitive bidding.

The risk in Deutsche’s view is ResMed’s strong position in the fast growing and resilient mask business may be diluted, which could translate to more subdued earnings growth while the operating environment remains difficult.

As RBS points out, there appears to be a growing disconnect among all participants in the sleep disorder market, as while ResMed is undergoing a mix shift from lower priced basic devices to higher-end units, payers are decreasing reimbursement levels through competitive bidding.

This implies the decision by ResMed to hold price lines are a precursor to losses of market share, while top-line growth is also likely to be impacted. RBS also suggests there are increased risks to ResMed’s main annuity stream through lower accessory sales. This all adds up to limited scope for share price outperformance over the medium-term.

One positive is ResMed will now be cycling weaker comparable sales numbers, though as Goldman Sachs suggests the fact the company has now reported four consecutive quarters of soft growth is a reasonable bellweather for the medium-term growth outlook.

From a longer-term perspective, UBS continues to see upside, suggesting ResMed has opportunities in ventilation and high end CPAP machines. As well, recent share price weakness increases the chances of a more aggressive share buyback in the broker’s view.

On the back of the quarterly update from ResMed, securities brokers covering the stock have in general made minor changes to earnings estimates. RBS Australia has lifted FY12 earnings per share (EPS) forecasts by 2.5%, while UBS has lowered its EPS forecast for the year to US18c from US19.6c previously. 

Goldman Sachs has also trimmed its EPS estimates by 3.5% in FY12 and by 2.6% in FY13, reflecting lower flow generator sales growth assumptions offset by upgrades to gross margin assumptions. Changes to forecasts have impacted on price targets, Goldman Sachs lowering its target to $3.00 from $3.35 previously and Citi to $4.13 from $4.39. 

Credit Suisse is the only broker to change its rating on ResMed post the quarterly, downgrading to a Neutral recommendation from Outperform previously. This reflects the view RedMed appears fair value at current levels given existing growth issues in the US flow generators market.

Overall, the FNArena database shows ResMed is rated as Buy three times and Hold five times, while Goldman Sachs also rates ResMed as a Hold. This reflects the view while the stock appears attractive on FY13 metrics, the focus of the market remains FY12.

The brokers with Buy ratings are looking beyond the current year, adopting a longer-term approach that suggests value once the market moves past its current tough trading conditions. As BA-ML notes, this should become even more apparent as benefits of a product mix shift being undertaken by ResMed eventually flow through.

Shares in ResMed today are weaker and as at 11.35am the stock was down 8c at $2.53. This compares to a trading range over the past year of $2.49 to $3.60.

 http://finance.ninemsn.com.au/newscolumnists/chris/8365617/resmed-has-become-a-post-fy12-story

Filed Under: Uncategorized

Is Your City Listed in the Top 10 Most Sleep-Deprived Cities

October 28, 2011 by admin Leave a Comment

A new study from the CDC names the top ten most sleep-deprived cities and Detroit is taking top honors.

  1. Detroit
  2. Birmingham, Alabama
  3. Oklahoma City, Oklahoma
  4. New Orleans, Louisiana
  5. New York, New York
  6. Cincinnati, Ohio
  7. Louisville, Kentucky
  8. Raleigh, North Carolina
  9. Columbus, Ohio
  10. Boston, Massachusetts

New York may be known as the city that never sleeps, but its residents are not America’s sleepiest.

And they’re not so “Sleepless in Seattle” either.

The distinction of being America’s most weary citizens goes instead to the nearly 800,000 residents of Detroit, declared America’s most sleep-deprived city based on data compiled by the Centers for Disease Control and Prevention and released by mattress company Sleepy’s.

Coming in behind Detroit is Birmingham, Ala., a state way to the south and with a different population, but still in need of sleep.

The rankings are based on individual sleep habits as reported in an annual study by the CDCP of more than 350,000 adults in all 50 states.  The findings took into account the percentage of time people don’t get enough sleep or rest, and the percentage of people who say they don’t get enough sleep more than half of the time.

If you live in one of the sleep-deprived cities, or just need a good nap no matter where you are, where should you head?  Go west, all the way to California.

Three of the top five cities reporting the most sleep are located in California  Joining San Diego, San Jose and San Francisco in the top five most well-rested cities are Dallas, TX and Richmond, Va.

Source: Sleepys Inc

Filed Under: Uncategorized

Home Testing for Sleep Apnea Not Inferior

October 16, 2011 by Randy Clare 1 Comment

BY SUSAN LONDON
Elsevier Global Medical News

VANCOUVER, B.C. – Recent research on the use of home testing for the diagnosis of obstructive sleep apnea and initiation of therapy suggests that “home testing is here to stay,” Dr. Charles W. Atwood Jr., FCCP, said at CHEST 2010, the annual meeting of the American College of Chest Physicians.

For more than 30 years, physicians have relied on the traditional polysomnography performed in the sleep laboratory to diagnose sleep apnea, according to Dr. Atwood. But with growing awareness of the condition and its prevalence, the number of people needing testing could overwhelm capacity.

“If you take the millions and millions and millions of people in the United States alone who have sleep apnea and try to feed them through the relatively small funnel of traditional sleep labs, then you are going to have big bottlenecks,” he said, adding that such bottlenecks already exist in some areas.

However, home-testing devices must meet certain key requirements before they are ready for widespread use. For example, they have to be simpler than those used in the lab. “Perhaps we can get by with fewer [physiological] signals, but we need to understand what the key signals are,” commented Dr. Atwood, a pulmonologist and sleep medicine specialist with the VA Pittsburgh Healthcare System and the University of Pittsburgh Medical Center.

Home testing devices will also need to be accurate, with high sensitivity and specificity, and “there is no single device I would say today that is perfect in both these regards,” he noted. Finally, they must be easy to use and durable, given the demands of in-home use.

Roughly 95 studies conducted between 1990 and 2006 evaluated home testing (also called portable monitoring) for the diagnosis of obstructive sleep apnea. Collectively, they had some limitations, such as their single-site nature, small and usually homogeneous populations, and varying degrees of rigor in design.

“And they frequently focused on the highest-risk subjects: These were middleaged men who were overweight, snored, and were sleepy, so [they were] the very low-hanging fruit for typical sleep apnea,” Dr. Atwood said.

These studies showed some mixed re- Home Testing for Sleep Apnea Not Inferior sults when it came to the diagnostic performance of home testing relative to lab testing. “There is no perfect study, at least so far, in this area, but some have come pretty close,” he commented.

Three more-recent studies suggest that home testing is at least not inferior to lab testing for sleep apnea diagnosis and initiation of continuous positive airway pressure (CPAP) therapy, according to Dr. Atwood.

In the first study, conducted in 68 people with a high likelihood of sleep apnea, the apneahypopnea index on CPAP and Sleep Apnea Quality of Life Index scores at 3 months did not differ significantly between a sleep lab and an ambulatory approach (Ann. Intern. Med. 2007;146:157-66). The rate of adherence to CPAP was better with the latter.

In the second study, which involved 102 patients with sleep apnea symptoms and no major comorbidities, all of a variety of sleep and quality of life outcomes after 4 weeks of CPAP were similar with a standard lab diagnosis and treatment approach vs. a home approach (Chest 2010;138:257-63).

The third study, the Veterans Sleep Apnea Treatment Trial (VSATT), is the largest study of home testing in North America to date, according to Dr. Atwood, one of the principal investigators.

“The VA is ill equipped to manage sleep apnea in a conventional way because we have relatively few numbers of traditional sleep labs,” he noted.

“Our study differed from basically all of the other studies in the literature in that we had very broad inclusion criteria and very nonrestrictive exclusion criteria,” Dr. Atwood noted. For example, patients with comorbidities could participate as long as their condition was stable.

Patients were randomized to lab testing or home testing, followed by initiation of CPAP for those with positive results.

Among the 223 who were started on CPAP, the home and lab groups had similar demographics. The average apnea hypopnea index was 41 for the former and 45 for the latter. The Functional Outcomes of Sleep Questionnaire (FOSQ) total score was about 15 in each group.

Results showed that the mean adjusted improvement in FOSQ total score between baseline and 3 months was identical in the two groups, at 1.79 points. And within each group, patients had significant improvements in the total score as well as its individual components. Both home and lab groups also had significant improvements on the Epworth Sleepiness Scale (–2.6 and –2.9, respectively), the mental health component of the 12-item Short Form Health Survey (+2.5 and +3.0), and the Center for Epidemiologic Studies–Depression scale (–1.4 and –2.2). Neither group improved significantly on the psychovigilance task or the physical health component of the 12-item Short Form Health Survey.

When it came to adherence, which was monitored with smart cards, the mean adjusted number of CPAP hours daily was 3.42 in the home group and 2.99 in the lab group, a difference that was not significant. Cost-effectiveness analyses are still ongoing.

“We concluded that the functional improvement with CPAP for sleep apnea is not worse when treated in the home setting vs. the sleep lab,” Dr. Atwood said. “We believe … home-based sleep apnea diagnosis and initiation of CPAP therapy is an effective way to treat sleep apnea.”

While home testing won’t entirely replace laboratory polysomnography, Dr. Atwood suggested trying to “integrate home sleep testing with full polysomnography in a clinically rational way.”

Dr. Atwood reported that he received research support from Embla, Resmed, and Respironics, and is a consultant to Embla and Itamar Medical, all of which manufacture testing and treatment devices for sleep disorders.

CHEST Physician Article | 01.13.11

Filed Under: sleep apnea

SASM Annual Conference: “OSA, Anesthesia, and Sleep. The Common Ground”, Oct 14, Chicago

October 11, 2011 by SleepDT Leave a Comment

Society of Anesthesia and Sleep Medicine

View Meeting Program

The Society of Anesthesia and Sleep Medicine (SASM) has been founded to encourage exploration of the substantial common ground that exists between Anesthesiology and Sleep Medicine and the anesthetic and sleep states.

The Society’s objectives are to:

  • Encourage the cross fertilization of ideas between anesthesiology and sleep medicine.
  • Promote clinical and epidemiological studies determining the associations between sleep disorder breathing and perioperative risk.
  • Examine methods of minimizing perioperative risk of upper airway obstruction or ventilatory insufficiency in predisposed individuals.
  • Explore the use of non-invasive positive airway pressure therapies to prevent and treat perioperative upper airway obstruction or hypoventilation.
  • Stimulate research examining the relationships in respiratory, neurophysiological, neuropsychological and neuropharmacological function between anesthesia and sleep.

The Society is organizing a preconvention conference at the American Society of Anesthesiologists on October 14, 2011 in Chicago focused on Obstructive Sleep Apnoea and Anesthesia

Filed Under: Uncategorized Tagged With: Articles, Blog

Effects of Insomnia on Michael Jackson

October 6, 2011 by SleepDT Leave a Comment

Michael Jackson struggled with chronic sleeplessness and was so desparate to sleep he ingested propofol (Diprivan) to help him sleep.

His concern about being unable to sleep may have developed into psychophysiologyical insomnia. People with this sleep disorder worry too much about insomnia and about being tired the next day and as a result, they become too tense and anxious to fall asleep normally.

Sleep problems can cause havoc with a person’s life. Before Michael Jackson’s death, he complained about problems sleeping. If he indeed had insomnia for any significant length of time, his mental and physical health may have been compromised, as this is what medical authorities maintain happens with sleep problems of long duration

Click here to see Joy Behar talke with Mark Geragos and Dr. Michael Breus about the effects of insomnia on Michael Jackson

http://joybehar.blogs.cnn.com/2011/10/06/5786/

Filed Under: Uncategorized Tagged With: Articles, Blog

BRPT Fires Back as Applications for new RST Certificate Climbs

October 6, 2011 by SleepDT 1 Comment

The BRPT and ABSM have done battle before, and dueling press releases last week opened old wounds. It started with an American Board of Sleep Medicine (ABSM) missive touting the number of RPSGTs applying for new Registered Sleep Technologist (RST) certificates.

Specifically, the ABSM reported that 1,250 Registered Polysomnographic Technologists (RPSGTs) have so far applied for equivalency status to obtain certification from the ABSM as a Registered Sleep Technologist (RST). “The encouraging response from RPSGTs affirms the value of the ABSM’s new registry exam and RST credential, which will promote professional excellence and dedication to the highest standards of patient care,” said Nathaniel F. Watson, MD, president of the ABSM, via press release.

According to the ABSM press release, all practicing sleep technologists who have passed the Board of Registered Polysomnographic Technologists (BRPT) examination prior to Dec. 31, 2011, and are RPSGTs in good standing, are eligible to apply to the ABSM for RST equivalency status. ABSM officials say this process gives RPSGTs an opportunity to obtain the new RST certificate without taking the ABSM Sleep Technologist Registry Examination, which will be offered for the first time Nov 11, 2011.

The BRPT responded quickly with its own press release. “We read with interest the recent ABSM news release regarding the number of RPSGT credential holders opting to accept the offer of ABSM RST equivalency, for a fee of $25, without a requirement to sit for the RST exam,” wrote Janice East, RPSGT, R. EEG T, president of BRPT. “The RST exam has not been administered to a single sleep professional, therefore the only way for ABSM to issue the credential now is to allow technologists to pay for the ‘equivalency’ by using their RPSGT credential plus a fee.”

East wrote that she and BRPT officials “strongly disagree with ABSM President Dr. Nathaniel Watson’s statement that the number of RPSGTs who have opted into RST equivalency ‘affirms the value of the ABSM’s new registry exam and the RST credential.’ It is not possible to ‘affirm the value’ of a credential for which no exam has yet been given, reviewed for reliability and validity, and validated by an independent third party.”

East continued: No one needs the RST credential if you have earned the RPSGT credential. The RPSGT credential is positioned in all accreditation and licensing bodies. Those individuals currently described as holders of the RST credential are, in fact, holders of the RPSGT credential: a credential which Dr. Watson and other representatives of the AASM leadership have previously indicated is not an indicator of readiness to perform the primary duties of a polysomnographic technologist. This was offered as the reason ABSM created the RST credential in the first place. That assertion was made even as the RPSGT—a 32 year old, NCCA-accredited credential held by over 17,000 sleep technologists worldwide, is positioned as “equivalent” to the RST exam.  How do the opposing statements for the RST creation and the one granting RPSGTs “equivalency” for $25 make sense?

For more information on the BRPT, visit www.brpt.org

To learn more about the ABSM, go to www.absm.org

Filed Under: Uncategorized Tagged With: Articles, Blog

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Editorial Board

Randy Clare
Managing Editor of SleepScholar and RespiratoryScholar
Dr. Steve Carstensen
Pankey Institute for Advanced Dental Education, American Academy of Dental Sleep Medicine.
Ruchir Patel MD
Founder & Medical Director at the Insomnia and Sleep Institute of Arizona.
Dr. John S. Viviano
AADSM Diplomate and member of various sleep organizations. Has lectured internationally on the treatment of Sleep-Disordered Breathing and the use of Acoustic Reflection.
Jeffroy Wyscarver
President, DDME Online, Sleep Lab Technology and Services for the Dental Community.
Claude Albertario
RPSGT, speaker, author and mentor in the field of sleep diagnostics with 25 yrs of management experience in one of New York's premier sleep centers.
Joseph Anderson
Co-Founder and Director of Education for Priority Health Education and Priority Scoring.
Todd Austin
Managed sleep labs and has 15 experience in sleep diagnostics and therapeutic systems. .
Marietta Bibbs
Sleep specialist and manager of Sleep and Neurodiagnostics at Morton Plant Mease Healthcare.
Bradley Eli DMD, MS
Director, San Diego Headache and Facial Pain Center / Sleep Treatment and Research Institute
Edward Grandi
Executive Director of the American Sleep Apnea Association.
Edward Michaelson MD
Board Certified in Pulmonary Medicine, Internal Medicine and Sleep Medicine
Ashley Truitt
Founder & Director of Dental Sleep Medicine Worldwide, Co-Founder of TPT Dental.

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