David Bailey

David Bailey questioned the flexibility of Telix's R&D investment in relation to commercial performance, asking if R&D spend would adjust based on sales guidance and if earlier-stage clinical trials would be prioritized for potential holds.

Answer

Christian Behrenbruch, CEO and Managing Director of Telix Pharmaceuticals, stated that while 2026 is expected to be strong, R&D investment is discretionary. He clarified that adjustments, if needed, would occur outside the five ring-fenced priority studies (four therapeutic, one BYPASS), ensuring core programs remain funded.

David Bailey followed up on the company's R&D investment strategy, asking if R&D spend would fluctuate with commercial performance and if earlier-stage clinical trials would be prioritized for potential holds if commercial expectations are not met.

Answer

CEO Christian Behrenbruch stated that R&D investment is discretionary, with any adjustments primarily affecting studies outside the five ring-fenced priority trials (four therapeutic and the BYPASS study). He expressed confidence in financing the R&D pipeline for 2026, not anticipating difficulties.

David Bailey asked about the potential timing of Philips' re-entry into the U.S. device market, its potential impacts, and ResMed's observations on competitive dynamics in regions where Philips has already re-entered.

Answer

CEO Mick Farrell stated he has no specific timing for Philips' U.S. re-entry, deferring to Philips' management. He noted that Philips has been back in over 100 countries for an extended period, and ResMed is holding market share and competing effectively, even with other competitors vying for market positions.

David Bailey inquired about the potential timing of Philips' re-entry into the U.S. device market, its potential impacts, and observations on competitive dynamics in regions where they have already re-entered.

Answer

CEO Mick Farrell stated that Philips' own management does not know the timing of U.S. re-entry. He noted that ResMed has been competing effectively against Philips in over 100 countries in Europe, Asia, and Rest of World for 12-24+ months, holding market share and demonstrating confidence in ResMed's superior products and ecosystem.

David Bailey from Morgan Stanley inquired about observations on new patient flow and physician prescribing habits since the Zepbound (GLP-1) label was expanded for sleep apnea.

Answer

CEO Michael Farrell reported that patients on GLP-1s have an 11% higher start rate on CPAP therapy and better long-term adherence. He stressed that ResMed is proactively educating high-volume GLP-1 prescribers on CPAP as the gold standard of care to capitalize on this trend.

David Bailey from Morgan Stanley asked for observations on new patient flow and physician prescribing habits following the Zepbound label expansion for sleep apnea, particularly regarding the co-prescription of GLP-1s and CPAP.

Answer

CEO & Chairman Michael Farrell reported an 11% higher PAP therapy start rate for patients with a GLP-1 prescription compared to those without. He also noted higher resupply rates for this cohort at one and two years. Farrell stressed that ResMed is proactively targeting these physicians with medical education to reinforce PAP therapy as the gold standard of care.

David Bailey from Morgan Stanley inquired about the latest data on resupply rates for patients on GLP-1 therapy and the risk of them ceasing CPAP therapy after weight loss.

Answer

CEO Michael Farrell stated that ResMed's data on over one million patients shows that those on GLP-1s are highly motivated and have higher, sustained adherence rates to CPAP therapy. He dismissed the idea that they would stop therapy after weight loss, noting that partial treatment is not a cure for sleep suffocation and that this patient cohort is actually 'doubling down' on their health.