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Biotech / Medical : ResMed (RESM) -- A Proven Sleep Apnea play! -- Ignore unavailable to you. Want to Upgrade?

To: Ron Kline who wrote (3)	9/26/1998 1:39:00 AM
From: INFO_DART	Read Replies (1) \| Respond to of 14

Ron Kline, Here is a post I made on August 5, on a different board. Thought you might find it helpful. Thank you for your analysis. However, I disagree with it in some important ways. Your projections: competitive treatments, declining margins, Asian presence, declining profits. CPAP is GOLD and RESMED is top in CPAP. CPAP is the gold standard against which all other treatments for OSA are measured. CPAP has been the gold standard since introduced. There is no other RELIABLE treatment. It works nearly 100% of the time for nearly 100% of the patients. All other treatments work for a minority of patients. Unfortunately, many patients have various surgeries to treat OSA, and still suffer from OSA. There is no evidence to suggest any change in this situation, non-invasive surgical methods included. RESMED has the best position in the CPAP market. Unit Sales Volume Will Grow The OSA market is radically underdeveloped. We have only hit the tip of the iceberg. Only a very small percentage of sufferers have been diagnosed and an increasingly large percentage of the population will develop OSA. Unit Sales Volume will grow and more than offset any decrease in margin. Furthermore, the key to increasing margins in the future will rest with the great opportunity for database marketing to existing customers. Thus maximizing the lifetime value of the customer will offset declines in margin. Asian Impact. I think the Asian exposure is a great positive for RESM. Consider this, RESM has great results Despite the Asian impact; even depressed Asians will continue to want to breathe when they sleep. Conclusion: RESMED profits will continue to grow dramatically for the foreseeable future.