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Respiratory device makers ResMed (NYSE:RMD), and Philips (NYSE:PHG) traded lower on Friday after Eli Lilly (NYSE:LLY) said an FDA decision on a potential label expansion for its weight loss therapy tirzepatide against obstructive sleep apnea (OSA) is expected later this year.
The announcement hurt the shares of ResMed (RMD) and Philips (PHG), which dominate the market for CPAP (continuous positive airway pressure) machines, an FDA-approved solution for OSA.
Shares of Inspire Medical Systems (INSP), which offers a minimally invasive solution designed to treat the condition, also came under pressure.
LLY’s announcement coincided with detailed results from its Phase 3 SURMOUNT-OSA program, in which tirzepatide, a dual GIP and GLP-1 receptor agonist, reached its main goals with or without PAP therapy.
The Indiana-based drugmaker said it has already submitted regulatory filings with the FDA, seeking a label expansion for the once-weekly injectable for moderate-to-severe OSA and obesity.
However, Axsome Therapeutics (AXSM), which markets a therapeutic option for OSA in the form of its sleep disorder therapy Sunosi, traded higher.
Similarly, in April, ResMed (RMD) and Philips (PHG) shares declined after LLY announced topline data from SURMOUNT-OSA, noting that two trials comprising the program reached main goals.