ResMed Protects Patent Landscape - Analyst Blog
April 02 2013 - 10:20AM
Zacks
Recently, ResMed
(RMD) filed parallel lawsuits in the International Trade Commission
(ITC) and U.S. federal court to protect its patent landscape from
its international competitor APEX Medical.
This provider of medical equipment to treat and diagnose
sleep-disordered breathing (SDB) filed a patent infringement
lawsuit against Taiwan-based APEX Medical. The lawsuit claims,
among other things, that several APEX Medical products violate
numerous ResMed patents.
Many APEX products such as the APEX WiZARD 210 and WiZARD 220 masks
and APEX iCH and XT Fit flow generators among others infringe
ResMed’s intellectual property. Thus, ResMed seeks to recover the
damages against the defendant.
We note that ResMed also filed action against Medical Depot (doing
business as Drive Medical Design and Manufacturing), the
distributor of APEX products in the U.S. As per the lawsuit, ResMed
wants to stop any further importation and sales of APEX products
into the U.S.
ResMed currently holds a major position in the worldwide market for
generators, masks, and related accessories for the treatment of
SDB, especially obstructive sleep apnea (OSA). The company enjoys a
competitive edge over other players in the market it serves.
ResMed’s ability to compete effectively relies on its ability to
protect its patent landscape.
Considering the SDB market overview, there is massive growth
opportunity driven by lifestyle trends, further penetration and
increasing awareness. Evidently, the company’s new generation
products are major growth catalysts. ResMed has had to turn to
litigation to protect its intellectual property. The move is seen
as a coherent decision to spur innovation and new product
development.
With a nominal revision in Zacks Consensus Estimate for the ongoing
fiscal over the last 30 days, the stock carries a Zacks Rank #3
(Hold). While we remain on the sidelines for ResMed, other medical
stocks such as Cepheid (CPHD),
Cyberonics (CYBX) and Given
Imaging (GIVN) warrant a look. These stocks carry a Zacks
Rank #1 (Strong Buy).
CEPHEID INC (CPHD): Free Stock Analysis Report
CYBERONICS INC (CYBX): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
RESMED INC (RMD): Free Stock Analysis Report
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