did you see the incredible almost 10% run today in the stock of rested here's a a medical device maker which sells products that combat sleep apnea and chronic obstructive pulmonary disease basically ResMed makes continuous positive airway pressure machines or CPAP machines for short that will help people with sleep AP you get a full night sleep instead of waking up all the time but gasping for air on top of that more and more of their mach are connected to the web with over a million patients remotely monitored each day now sleep apne is commonly associated with
obesity and given that America unfortunately is getting fatter I'd say rest Med is in a growth industry and to be sure rest men's devices have multiple Market targets that's certainly the takeaway from this terrific quarter that the company reported just last night rest delivered a 3-cent earning speed off a 70 Cent basis with higher than expected Revenue up 16.7% year- year plus the company's already benefiting from its $800 million acquisition of brightree last year a cloud-based provider software for postacute care industry think Home Medical Equipment and hospice care in response to stock shut up six
bucks wow 99.6% can this stock keep climbing or should we be more uh wary some analysts say it's moved too much let's take a closer look with Mick fary the CEO of rested he more about the quarter and his company's prospects Mr farell welcome back to welcome back to M money thanks for having me here Jim it's great to be back all right Mick first when I ever I hear rest men I see more and more people you you've got now of a million patients remotely monitored if people knew that they may have they have
chronic obstructive pul disease or sleep apia how many more people would be using reset devices well we actually have more than two million people on 100% connected uh Cloud connected medical devices in sleep apnea and as you said Jim we're expanding into COPD we have non-invasive ventilators portable oxygen concentrators and life support ventilators that now connected to the cloud so we're going to take all the skills that we've had in helping reduce costs for CPAP setup and improve outcomes for CPAP patients in terms of adherence and take those skills over to the COPD market and
help the 200 million patients with COPD of which 10% could use our Cloud connected therapies to help keep them out of hospital and in the home with a good quality of life that to 200 a huge total addressable Market far more than it's being attended to right now oh absolutely look we're no more than 1% penetrated into the COPD Market opportunity we're no more than 20% penetrated into our core Market which is sleep apnea there are 40 to 60 million Americans that suffocate 6 million under treatment one of our big markets right at the moment
that's growing well for us is China we're less than half a percent penetrated into the Chinese market for sleep apue all right I thought there was a very important Point raised in your conference call which is that we've got Tom Price he's an orthopedic surgeon he's coming in he's going to be the HHS secretary I've been saying stay away from drug stocks because this man is being very tough on drug stock on drug companies that raise price but because of how much he likes Home Medical Care he's very passionate about it he could actually be
someone who could help rmed no question Jim Congressman price uh who's a congressman from Georgia was on stage last October at Med trade which is our national Home Care conference and the association American Association of home care of which we're a part supported Tom Price on stage he got on stage at Med trade and said Home Care is really important he's an orthopedic surgeon so he knows all about hospital care and I think he called it sick care where patients are frequent flyers in the ICU and the CCU and Post Acute what we do at
ResMed is keep them happy and in the home and Mr price was very supportive of the Home Care industry when he was with our industry and we believe if he does get confirmed that he will continue to be supportive of the Home Care industry as HHS secretary but of course we'll wait and see and be ready to to partner with him on keeping patients at a hospital in the home uh well taken care of and with a good quality of life now you have a huge motor over your business because of all your your cloud
and your data um does the data demonstrate any anything that doctors could tap into that could help their patients there's so much we can learn from these data Jim we have more than one billion nights of sleep data on patients and th big data is the term right everyone's talking about Big Data big data is a means we want to take that big data and through cloud-based algorithms turn it into actionable information that patients can use to manage their own care that Physicians can use to manage groups of patients and that insurance companies and governments
can use for population Health Management the opportunities are boundless and what we can do with this and um I've met Dr Oz a couple of times and I I'd say he's an acquaintance of mine he always talks about sleep that's his most that's the first thing he asked you about how much sleep do you get he is now alive with you could there be many different things that resme could do Under the tutelage of Dr R we formed a great partnership with Dr Oz and since you've had a relationship with him Jim you know he's
a cardiac surgeon who's also a great businessman we formed a joint venture between ResMed Pegasus cap and Dr M putting his own capital in so he's not a paid spokesman he's actually an equity holder and we had a program on the do o show in the fall where we gave away and sold a number of our sleep monitoring equipments and we got a million nights of American sleep data and Dr o got up on show uh at the cons Consumer Electronic Show and talked about how we're not sleeping enough we only get 6 hours sleep
as Americans and the national sleep Foundation recommends seven or8 hours so it's a Public Health crisis and sleep apnea a Subs segment of that is associated with risky breathing so for ResMed it's great we get our brand name there out with sleep Wellness but also we can identify risky breathing or shortness of breath which are signs and symptoms for sleep apnea and Coop dat well I think it's a great combination and I love the fact that you're stuck at such a big mood today Mick farell CEO of ResMed rmd and I think many things are
going right for you thank you so much sir good to talk to you thanks great to talk to you again Jim M money's back after the break Booyah Jim Kramer here from Mad Money thanks for watching CNBC on YouTube click here to subscribe and get the jump on my exclusives with CEOs Plus Market news investing advice and a whole lot more
