Resmed Inc (RMD) September 2026 Conference Transcript

Okay. Good morning, everyone. My name is David Bailey, part of the healthcare team at Morgan Stanley, joined today by McFarrel and Aaron Blumer from ResMed. Welcome to you both. Great to have you here. Before we begin, there are some disclosures. Please see the Morgan Stanley Research Disclosure website at morganstanley.com forward slash research disclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. Thanks very much again for coming today. Great to see you in person. Topics-wise, we might go through growth, competition, GLP-1s, margins and strategy as broad topics. We'll see how we go in 35 minutes. Maybe just to begin, as we look back over the past five years, Nick, very strong growth across the business from a revenue perspective. US devices, I did the calculation this morning, 15% per annum growth over fiscal 21 to 26. I think it would be good just to understand a little bit what you're seeing from a volume perspective in terms of patients coming into the system, some of the drivers that you're sort of observing as to either pulling people into the funnel?

Yeah, well, it's good to start on growth because we're a growth company. We're a growth story. What we're seeing in the market is very strong and steady growth. We talked about in our earnings call a couple of weeks ago, we actually gave guidance for the first time. We listened to you, our investors, and you asked for that, and we talked about 5% to 7% growth across the business, including removal of $75 million for Astral. And if you added that back in, that would imply a sort of organic growth. It was around 130 basis points of Astral. That $75 million, it would be 6.3% to 8.3% growth guidance on the top line. We also gave bottom-line guidance that implies some pretty strong leverage through the P&L down to EPS in the low double digits. So, yeah, when we think about growth, we think about patience, right? And so what's our total addressable market? It's a billion people worldwide who suffocate every night. So that's the prevalence of our core obstructive sleep apnea market. We also add on 800 million who have insomnia, and we add on 400 million now who have restless legs syndrome. And we'll talk later about M&A, but we acquired Noctrix, a company that makes the world-leading restless leg syndrome treatment, non-invasive, completely reversible drug-free therapy as well. And the other part of our TAM is 480 million of chronic obstructive pulmonary disease patients. You add that all together, that's 2.7 billion people worldwide who have a sleep health or breathing health disorder and need our solutions, our healthcare technology at-home solutions. And so with that as our TAM, our goal is to, that's one in four people on the planet, is to continue to grow steadily. And we've talked about growth of devices, America's sleep devices in the mid-single digits and growth of the masks and accessories and other parts of our business in the high single digits. Our goal is to meet and beat that every quarter through demand gen, demand capture, demand curation. And there are some pretty big megatrends that are actually supporting growth, to your question around growth, from big pharma bringing people in to primary care like never before for the glucogen-like peptides. They're coming into PCPs, and we're educating those PCPs on if they have obstructive sleep apnea, you have to write a script for the gold standard, which is CPAP, APAP, and bi-level therapy. So we're seeing that come through. The other big trend on growth is consumer tech. We talked two years ago here at this conference, I think, about Apple just came out with sleep apnea detection on their Apple Watch two years ago, following Samsung on their Galaxy Watch. the rumor is that Samsung's Galaxy Ring will have sleep apnea detection before the end of this calendar year and we have formed a strategic alliance with Aura who's a major player in the wearable space on the ringside and before their IPO I think in their S1 document ResMed was mentioned as a partner around sleep health so growth is strong mid single digits on America's devices high single digits on America's masks and other and pretty strong growth in RestorWeld as well.

We think through some of the pathway from patient diagnosis to therapy, we have noted an increased proportion of home sleep testing, which makes things a little bit easier. But I'm sort of wondering if there's anything else that ResMed's sort of focusing on converting patients from that diagnosis into therapy, either through internal initiatives and or acquisitions, helping support that patient pathway, making it a bit easier to get through the final on the treatment.

Yeah, no, it's a really good question, David, because we think about the whole sort of value chain from sleep-concerned consumer, part of that $2.7 billion total addressable market, all the way through to screening, diagnosis, treatment, management, and being on therapy for life, which is where ResMed focuses our time. To your point, this isn't just us going out there and advocating for work. We've done some internal development work, but also some acquisitions. So I'll talk about three of them. We acquired a company called Ectosense, and they make a fingertip-sized home sleep apnea test called NIDAL. So it just fits around your finger. Think like a Band-Aid size around it, Bluetooth to your phone, and the day you go to the cloud and go to the sleep doctor. So Ectosense and the product NIDAL. We also made an acquisition of a company called Somnaware, which is software for the pulmonary physician to have seamless workflows for them. And the third acquisition or partnership that we created is to understand that whole value chain and put all the part pieces together is tying into our Bright Tree model and tying into our sort of overall ecosystem and creating a smooth pathway for the patients. As we see those acquisitions happen, we've actually got to form partnerships and understand the channel better. I talked earlier about primary care physicians seeing a whole lot more patients coming in. We're now educating, and we've had interactions with 95,000 primary care physician continuous medical educational CME episodes with 55,000 unique clinicians, and most of them are primary care physicians, And that is re-educating, if you like, those people around gold standard treatment, writing prescriptions for CPAP, but making it really easy. And how do you make it easy? That leads to the third acquisition. We bought a company called Virtuox, which runs a home sleep apnea testing protocol. And the goal there is to create the Amazon one-click for that primary care physician because they're dealing with everything from headaches to tinea, head to toe. When they identify sleep apnea, they need the one-click, and with VirtuOx we have that. They can refer them to the number one home sleep apnea testing protocol, which is VirtuOx, and they can get screened, diagnosed, get an independent diagnostic and testing facility approach with the numbers. If it's positive, they can refer to a board-certified sleep doctor within that state to write a prescription. It can be virtual or in-person, and then the patient can be sent to an HME and be taken care of. So as you think about that demand generation from big pharma or big tech that I talked about earlier, our job is to do the curation and conversion all the way to a prescription for gold standard therapy. CPAP, APAP, bi-level, then making sure they get to a good DME that can get them on therapy. And then our goal then is to keep them on therapy for life and make sure they have masks and accessories and are well taken care of.

I think just adding on to that, two of the biggest growth opportunities I see for ResMed over the next, you know, mid to long term is one is that middle of the funnel. So Mick just talked about all these new patients that are coming in, whether it's through primary care, through the consumer tech companies. How do we help convert them, right, and partner with our HME partners in a country like the U.S. here? But making it more of a consumer-like experience, like the Apple, the Amazon experience that Mick talked about, that makes it easy for that patient to be able to go on and start and then stay on therapy. The second big thing is we've got millions of people around the world that are loyal ResMed users every single night, helping them sleep. How do we make sure that we're getting them the latest up-to-date masks when they need it, every couple of months? the latest up-to-date devices. We've had AirSense 11 now in market for over five years. How do we make sure all the patients around the world who are eligible can get an AirSense 11 and eventually when we launch our new platform as well? And so how do we just make sure that all of the loyal users that are using our devices are taking advantage of all the opportunities for them to use it as often as possible?

Some follow-up questions here. All those initiatives sound great. I suppose the question is how far I've progressed. are you in those initiatives? So thinking through the acquisitions, where is the opportunity for PCP, education, all that sort of stuff? And will it support incremental growth over and above that mid-single digit? So that's probably one question. And just following on the mask and accessories piece, is there further opportunity for resupply from where we are now?

Yeah, but look, as I said, our goal is to meet or beat that mid-single digits every quarter. I think what we are seeing, if you look at just last quarter we reported, We had 8% growth in devices, sleep devices, in the Americas. And if it's mid-single-digit growth, take the middle of that 5%. That's 300 basis points of extra growth that we're able to drive. Our goal is to meet or beat that mid-single digits every quarter. It's an ongoing game, and it's not done. There are so many patients coming in, and if they come in because of an ad with Shaquille O'Neal or Eli Lilly saying, don't sleep on OSA, they come in with a goal there to the primary care physician. Our education is to make sure that primary care physician does the right thing and writes that script, but you can't guarantee that that person does go and get that set up for CPAP, APAP, bi-level. We did very well in Q4. Our goal is to do that in Q1, Q2, Q3, Q4, in and out every time. To the question around growth on resupply, and so we're not done with that. We're fighting all the time. On the resupply and engagement, if you like, as Aaron was talking about with our installed base, which is a huge part of our business on masks and accessories. 80% plus we've talked about in the past is around getting that patient motivated to come in and get a fresh new mask every three months or a new tubing or a new tub for the humidifier. We're doing very well with Bright Tree Resupply. We've added SNAP technology, which is an automated resupply approach. And we actually launched SNAP Lite, which is a resupply approach for people who don't, HMEs who don't use BrightTree which is our sort of management system, our Oracle or SAP if you like for the HMEs but for those who aren't on BrightTree SnapLight is able to drive resupply so all that together David means that I think we can meet and beat that high single digit growth on masks we beat it in Q4 on masks and we beat it in Q4 on devices but it's an ongoing game of fighting for that referral, making sure they come through and then contacting the patient One last thing I'll say on the resupply is we're now over 10 million users on our app, our portable app called MyAir, and so 10 million users have downloaded ResMed MyAir, many, many millions of them every day will check their MyAir score, and you wouldn't think that these people would be that engaged. We're not like meta where we make them addicts to their approach on Facebook or Instagram. But we are gamifying that. And it's quite interesting when you look at that. We added on to MyAir our generative AI products that we call Dawn. And Project Dawn is like Dawn the sun rising, not a person. But it's generative AI that has 37 years of respiratory medical knowledge. So all of ResMed's knowledge is in this generative AI. all the published and peer-reviewed public literature on sleep and respiratory medicine and all the tips that you have about what good sleep comes from. So, you know, drinking five glasses of water a day actually helps you sleep better. Cardiovascular exercise of 30-plus minutes three to five times a week actually helps you sleep better. Those types of sort of general sleep health tips are in that. We put Dawn, which had just been on resmed.com and available for anybody. We call it the digital sleep health concierge, to help people work through that screening, diagnosis, treatment pathway. We put it on MyAir, which is sort of like where the sleep nerds are, checking their data every day. And we thought, well, it's just an experiment. Let's see how many times people engage with this generative AI, very knowledgeable sleep expert. We only put in, what, a quarter or two ago? A quarter and a bit. 1.5 million inquiries to date. These are people on therapy engaging. So to your question around resupply, is there more to do to engage the installed base? There's a lot more we can do. And we're going to track that because little changes such as that probably drive up adherence. We've got peer-reviewed published evidence that just reaching out to a patient to talk to them about resupply, whether or not they get a resupply new mask, increases adherence. And so engagement with the installed base and driving that, we're not done with it. and I think this new tech, particularly generative AI, is going to engage consumers like never before and I look forward to peer-reviewed published evidence that shows that engaging like that actually drives up adherence clinically as well but we're early days in that journey.

Very good. Maybe just to round off the revenue piece, so guidance for the first time, top line, maybe just thinking through the volume versus price equation to the extent we can, just comments there.

So as Mick said earlier we guided for the first time, we guided to five to seven percent on a core constant currency revenue basis. But as Mick alluded to earlier, we do have about 130 basis point headwind coming from the field safety notice of Astral. So you strip that out, you're almost at six and a half, eight and a half. So squarely within that high single digit growth that we've talked about. ResMed's philosophy has and will continue to be that we're going to get the vast majority of our growth coming from volume. We believe that volume is the way to drive sustainable, durable revenue growth over time. We do that through a lot of the initiatives Mick talked about. We do that through product innovation that we continue to bring to our customers and to our patients. And so pricing in times of an inflationary environment like we're in right now is a lever that we can and will pull, but it's a small portion to the overall growth that we're seeing from a volume perspective.

Maybe we'll just jump to margins if we can. to ask, and then I'll jump to the most frequent questions I get around competition and GLP-1s, but maybe just in the margin piece, what are you seeing? Where's the inflation coming from? So oil linkages is one thing, potentially around plastics and resins, that type of thing, but the other part might be on more of the component side, the printed circuit board. So can you maybe talk a little bit where the pressure points are coming from a cost of goods sold perspective?

Well, first I'll just take a step back, and I think it's important to recognize just the tremendous work that the supply chain team at ResMed has done. Over the last three years, we've expanded our gross margins more than 500 basis points over that time period. And so just tremendous work. The productivity pipeline that they have, and I've seen firsthand, we have operating reviews and cadences around this every single month. It's really, really impressive to see. But we're not immune. We're seeing inflation in two key areas that we're seeing inflation. One is just on freight, fuel, and logistics. And so obviously everything that's happening with the Iran conflict is having a material impact on how we distribute products around the world. We are doing things like, for example, by moving more of our distribution network and manufacturing here in the United States as well that will help mitigate that over time, but it's an over time type of thing, right? So that's one big area. And then the second is just on electromechanical components. And so, again, the medical technology community is a very small purchaser of these components, and a company like ResMed, no different, right? And so we don't have the same purchasing power of some of these consumer electronic companies or AI and tech companies do, and particularly on some of our older devices, like on AirSense 10, which has been out now for more than a decade, we're seeing pretty dramatic cost increases. that we're having to incur. Again, we're doing everything we can to offset them, but we are passing on a very modest price increase to help offset some of that.

And just on that component piece, do you think it is a cyclical element or is it something more structural around certain technologies being stepped away from? Is it demand for AI taking away from, you know, is it sort of a, I suppose the question is, is it more of a cyclical thing or is it potentially a bit more structural as well?

I think it's both. I think it's definitely more acute right now, just given the supply constraints that exist. But I also just think, again, with more and more of the demand going to the AI companies, I definitely think that we are going to have a smaller purchasing power. And that's, again, why we're so focused on our productivity pipeline, driving margin expansion, making sure that we're driving cost savings initiatives with our supplier base as well, doing things like Kaizen events and having cost-out initiatives and expectations with our suppliers on an ongoing basis. These are all levers that we have that we can pull to be able to help offset some of that.

And I mean, the net of all of that is that we are going to see low double-digit basis points improvements in ResMed's gross margin every fiscal year through 2030. We're remaining with that guidance. So we're going to deal with all these headwinds on freight and components, very modest price increases. But as Aaron talked about, the supply chain team we have is very sophisticated and has a productivity pipeline. Like, we've always had a really strong product pipeline, and we still do. Smallest, quietest, most comfortable, most cloud-connected, most intelligent devices. We've now got a productivity pipeline in our supply chain to be able to overcome these other aspects. So we'll be able to achieve that cross-margin accretion on an annualised basis.

And as I look through my model, so I think you said first quarter could be a bit below the PCP, so 62.0, 1Q26, a little bit below, but then you're guiding for double-digit for the full year. So progressive increases over the years. So I suppose the question would be, is part of that price as a productivity as well, just so getting through to gradual gross margin improvement over the year. So is it a combination of those two things getting you to the double-digit increase for full year 27?

Spot on. So when you think about a productivity pipeline, it builds quarter on quarter on quarter. The inflationary impact that we have, and we saw it exiting Q4, and we saw a slight sequential decline quarter-over-quarter Q3 to Q4 in our margins as an example as a result of that. And so that's one. And then two, pricing. We just started to implement price increases here in Q1, and so there's almost no impact on top-line revenue or gross margin from a pricing perspective in one queue. That'll build as we go into Q2, Q3, and then in Q4.

One of the things you did touch on is maybe a bit more promotional activity, getting out there and sort of raising awareness to a degree, but also promoting the ResMed brand. We see bits and pieces in Australia with rugby teams and things like that. But maybe can you talk a little bit about the sales and marketing focus? Is there a cost associated with that, I suppose? The other part is that you've mentioned the gross margin has been a fantastic driver of growth over the past few years. Before that, the sales and marketing, the operating leverage was extraordinary. The question is, where to from here on those lines, those operating cost lines? or are you going to be spending a bit more to pull people into the system?

It's a good question. Look, the goal isn't to change, actually, our profile on that. We have freed up some money to our marketing function, and, yeah, you've seen that in promotions on normalising or de-stigmatising CPAP therapy and showing not only is it normal and appropriate to have good breathing and good sleep, it's actually life-changing. It could save your job. It could save your marriage. It could save your life. Those were the statements of the first patient. The reason ResMed exists is the first patient said that to my dad 37 years ago, and he said, wow, I think we can make this device better than the one this person is using. And so we're finding examples of that. Our latest approach on this is we have a NASCAR driver who maybe you aren't followers of NASCAR. His name is Tyler Reddick. He was middle of the pack last season, wasn't performing, and his wife identified his sleep apnea through snoring and stopping of breathing. By the way, a spousal bed partner witnessing you stopping breathing is the number one sign and symptom. Don't wait till your Apple Watch or your Oura Ring tells you people. Trust that bed partner. You don't need the objective data from your Oura Ring or your Apple Watch but if you do, then it'll just confirm what they said. He listened to her eventually and he's doing this whole podcast around how he won the first three races Daytona 500 and the other the next three because of the treatment he got and so they actually approached us and said we want to promote this therapy it's life changing and so we're engaging with that so that spend around marketing is really around destigmatizing and normalizing CPAP and showing that this is a normal part of life and actually life-changing literally changing someone's career in how they perform in their job but then the other part and some people are motivated by that sort of the carrot some are motivated by the stick which is untreated sleep apnea leads to a heart attack or a stroke or untreated sleep apnea can lead to a six times increase in solid cell tumor cancer and and we've got data now around dementia alzheimer's and parkinson's that's peer-reviewed and published that this repetitive hypoxia can lead to that so some people are motivated by each getting that message appropriately to primary care but also to sleep-concerned consumers is out there. To your question about how does it hit the finances, we're actually freeing up that money for marketing from other parts of our SG&A. Everyone's talking about AI productivity and what we can do with that. Do you really need full-stack marketing teams in every country in Western and Northern Europe and throughout Asia? And so we're working with the teams to say, well, how do we appropriately use Gen.AI and other just simple off-the-shelf marketing tools to do that to free up the cash to be able to invest in marketing programs like this. And so our job is to get that demand generation, capture and curation without fundamentally changing the P&L. We've got to keep that money for R&D. That's how we keep ahead of the competition and keep the digital, the device and the mask systems right on the forefront. And so one of the innovations we had there on the mask side, I actually consider this as important maybe as heated humidification was 15 years ago in driving adherence, is we have, for the first time, put fabric on these liquid silicon rubber LSR medical-grade masks. And so it took us seven years of research to be able to get the fabrics engineering on these high-temperature, high-pressure, multi-cavity tools producing these masks. We're able to infuse fabric on them so that for the patient, it feels like their bedsheets, it feels like natural to have the mask touching their face with fabric. And so you watch innovations like that from R&D. You combine it with the marketing to make sure a patient is coming into primary care and will get that set up. That's how we get a patient on. When they start those first 90 days, we get that adherence rate. We're up to 87% adherence with all our technologies in the first 90 days. Keeping them on therapy for life is the goal from there. I don't know if you've got anything to add there on our demand gen and marketing work.

I would just say that we're committed to continuing to grow double-digit earnings as well, right? So we're doing all of that. But look, we're a growth company, like Mick started off with. And so we need to make sure that we're making the appropriate investments to create the demand, the generation, to nurture that patient through the journey, as Mick was talking about. And so that is going to require some incremental marketing investments. We've got KPIs around it. It's very disciplined, and we're going to make sure that that's driving top-line growth. And the great thing about managing a business is that we can get productivity and leverage elsewhere in lines of the P&L to be able to self-fund that, still deliver 12% to 14% core EPS growth this year in support of our top line.

Okay. That's great. Thank you. We might move on to the two most frequently discussed topics. So the first one would be the GLP-1. So maybe just starting with your observations in terms of the impacts of GLP-1s. We talked about the demand generation, but maybe some of the data that you presented, maybe just start with that, and I'll get a couple of follow-ups after that.

Yeah, David, so we're up to 2.5 million de-identified patients that we're following that have both a prescription for CPAP, our therapy, and a prescription for a GLP-1 latest generation, so like the ZEP-bound that has an indication for use to treat or half-treat sleep apnea. What we're finding is these patients, as they come into the primary care physician are incredibly motivated. It's a younger cohort and it's a more female cohort of patients than typically would show up at the primary care physician and talk about sleep apnea. And they're definitely brought in by Big Pharma doing this advertising. It's very interesting to track. 2.5 million. And we track three data points. What percent of them, after they get that prescription for CPAP, show up to the DME, to the HME, or a virtual setup, and start therapy. And we're comparing the general population to this GLP-1 prescribed population. What we see is an 11% – 11 absolute percentage points higher start rate on CPAP, APAP, and bi-level therapy for the GLP-1 cohort versus a control group. And then you say, well, maybe they just start it more. They're motivated just over the short term. So we're tracking them at one year and now at three years, post-prescription startup. And we track not only are they adherent, and our cloud-connected system can tell if they're using the device, we go to did they purchase something in that period, in that 12-month period. And what we're finding is at one year, there's 300 basis points higher resupply rate amongst the combo script, GLP-1 plus CPAP patient group versus just CPAP group. And then you say, well, maybe it's just a one-year thing. Does it last? At three years, the curves actually separate further. It's 6%, 600 basis points higher resupply rate amongst the combination script of GLP-1 plus CPAP versus the control group. And so very interesting that, you know, I think three years ago we would have been here at this Morgan Stanley conference saying, you know, the world thinks GLP-1s are a headwind for med tech. Actually now, particularly in respiratory med tech, I can say we've got 2.5 million reasons that it's a tailwind. High start rate, high resupply at one year, and even higher than that resupply at three years. We're tracking this cohort very closely. It's an exciting development for bringing people into the funnel. As you said, it's not going to double our growth rate of America's sleep devices, but can it get it up like 50, 75, 100, 125 basis points above what it would have been otherwise? Our data say yes, it can, and our goal is to achieve that.

The extension to that is I suppose we've got the initiation of therapy motivated after 12 months or after a year. What happens to those people? So I suppose the question is adherence or continuation after one year of GLP-1 as well. Is there any observations around that or data that you've sort of observed around, you know, because you've got the people that are continuing to use it, right? There might be some people that potentially stop. That's the biggest question we get. Do you have any views or data around the continuation of CPAP therapy after a period of time?

Yeah, well, I mean, we see that in those resupply data, because if they were stopping therapy, we'd see those resupply rates go down because they wouldn't be using the therapy. So the baseline is covered in those one- and three-year data. We're watching this with absolute productive paranoia, and I can tell you there is no downside of someone having a GLP-1 prescription. And I actually talked to a board-certified sleep physician around why do you think that there's an increase in the adherence rate, not a decrease, but an increase in the adherence rate for people who have the combined script. And this was a sleep physician who said, well, actually, maybe with some of the weight loss, it's lowering the P-crit, the critical pressure to keep the tongue off the uvula, and we have auto-setting devices. Our APAP devices change the pressure on a breath-by-breath basis. And so a slightly lower pressure might actually lead to more comfort. And so there's some observation in the literature that maybe these will lead to a higher adherence because of a lower PCRED, a lower max pressure, a lower mean pressure for the patient if they're using an APAP device, which the vast majority of people do. We don't actually know the causality. We just know the correlation, that a patient who gets a script for both is more adherent to our therapy at the start, one year, and three year. No increased drop-off, actually increased adherence. And the question is, how much increased adherence will they be? And, you know, do they stick with the other medicine as well? Do they stick with the GLP-1 and does that change and then the pressure goes back? But we're tracking that cohort and seeing over the whole group, 2.5 million patients, solid start rate, solid resupply at one in three years, no increased dropout, actually, increased adherence.

Okay. That's very good. Thank you. So you've obviously done a pretty good, obviously great job being able to supply most of the market. But one of the questions we do get quite regularly is your expectations for Philips re-entry. Just your thoughts there, and is there anything explicitly captured within your 27 guidance for a re-entry of Philips into the US market?

Yeah, well, it's interesting. That competitor has never left this market for masks and accessories. And look at our performance the last five years, the last 20 quarters in America's in masks and accessories. We've done very well competing with them, and that's all their sales team could sell was the masks and accessories. We compete in 140 countries worldwide with that competitor, and they're back in devices in 139 of them. And every time they've come back, they've had to earn their position from five to four to three, and sometimes they're not even number two yet after two years in some of those markets, including their home markets in Western Europe, their home country. So, you know, I want them back in the US. It's like an event horizon. I want them to come back because they're going to have to earn that number three or number two position. They've now moved their manufacturing, I believe, to mainland China, so they're going to have a Chinese import product to sell them to the US. The number two player right now is a Chinese import player through Florida, a private company. I think that's where they're going to have to go for share. In every country they've come, they've kept price at a quite high level and tried to compete on value, and they've had to compete in Europe and Asia to achieve that number three or number two position. So we look forward to them coming back. As to any impact on our guidance, absolutely not. We don't look back. We look forward in terms of our growth and where we're going.

And timing?

No real sense as to when? I'd be happy Monday morning.

Maybe just to finish off, portfolio management. So there's been some acquisitions, obviously, additive to fiscal 27, moving into new areas, but you've also got a recall there for Astral, but maybe just a comment on portfolio management.

I'll try to do it in two minutes that we've got here. So portfolio management, I'll talk about the M&A side first. I talked earlier, we invested $340 million into Noctrix, a great acquisition for restless leg syndrome. It's 400 million people worldwide who have it. Just here in the Americas, in the US particularly, 17 million people have restless leg syndrome, where they're kicking all night, waking themselves up and literally waking up their bed partner physically. We're very excited about that. we talked about, it's around $20 million in revenue. When I go to Stanford by Design, which is where this came from, and meet that team, it feels like ResMed circa 1990, 1992, which is this huge market, an amazing team with a non-invasive, drug-free, completely reversible device that scripts are written by sleep doctors and distributed through DMEs, HMEs, and the VAs. So, very exciting market. I'd like to see that grow. And at the same time, we did portfolio management. We divested from our matrix care business and got $490 million from Frasier Partners and exited sort of the slower growth software as a service market for nursing homes, hospice, and senior living. On the product side, we've also done some portfolio management. And, you know, we talked about our field safety notice and took a $42 million charge for Astral and our global field safety notice there. One thing that we talked about was there will be no new sales in fiscal year 2027. and here today I'm going to announce that we actually have started to talk to customers just yesterday that we are going to sunset the Astral platform. So after 15 years we'll be sunsetting that platform. No new sales of that device. But what we are going to do is prioritise every single PCBA for a patient who's part of that field safety notification. So every patient is taken care of. Where we are pivoting in our ventilation is actually to the AirCurve, which is on the Air11 platform. the AirCurve S, ST, and STA. These are non-invasive ventilators for COPD and overlap syndrome, and it sits on our very low-cost, high-quality Air 11 platform. So the same one as the AirSense 11 is now the AirCurve 11, S, ST, and STA. And we just launched that into the US this last quarter, and we're expecting great growth from it.

Pretty close to time there. Anything on Stellar as well? Is there still being... No announcements around Stella. Okay, great. We are pretty much on time, so thank you both very much for joining us today. Some really great insights there, and we'll catch up with you again soon. Yeah, thanks, David.