ResMed Shares Plunge Following Tirzepatide Trial Results

Shares of ResMed Inc. tumbled over 13% as investors reacted to the latest trial results of tirzepatide unveiled by Eli Lilly And Co over the weekend. The pharmaceutical giant shared detailed findings from the SURMOUNT-OSA phase 3 clinical trials, which assessed the impact of tirzepatide injections on obstructive sleep apnoea (OSA) in adults with obesity.

Tirzepatide, marketed under the brand names Mounjaro and Zepbound, is widely known for its usage in treating type 2 diabetes and aiding in weight loss. In the trial data released, tirzepatide successfully met all primary and key secondary endpoints, showcasing a notable reduction of up to 62.8% in the apnoea-hypopnea index (AHI) compared to placebo.

Notably, about 43% to 51.5% of participants treated with the highest dose of tirzepatide achieved disease resolution, as defined by reaching an AHI threshold of fewer than 5 events per hour or a specific AHI range with a low Epworth Sleepiness Scale (ESS) score. The ESS is a standard measure used to evaluate excessive daytime sleepiness.

Dr. Atul Malhotra, in discussing the trial outcomes, emphasized the significant improvement observed in patients with moderate-to-severe OSA and obesity who were treated with tirzepatide. Jeff Emmick, Ph.D, the senior vice president of product development, underscored the lack of pharmaceutical treatment options addressing the root cause of OSA, a condition impacting millions of individuals daily and linked to severe health consequences.

The results from the SURMOUNT-OSA trials have sparked concerns among investors, reflected in the sharp decline of ResMed shares today. There is apprehension that the success of tirzepatide in OSA treatment could potentially impact ResMed’s market share in the upcoming years. The market will closely monitor how this development unfolds and its implications on ResMed’s future growth trajectory.