The easy switch from a psychological perspective is into another sector stock which has underperformed, with RMD a candidate after its recent plunge courtesy of drug maker Eli Lilly’s announcement that trials of its tirzepatide weight-loss drug reduced the severity of sleep apnea in 43% of patients – very bad news for RMD if this gathers momentum. We see ongoing uncertainty and volatility in RMD, and for us to take on the risk that Ozempic et al. will smash the demand for RMD, we need to buy the stock 10-20% lower.
- We see no prudent reason to buy RMD into current weakness – it feels like a punt at this stage.
MM is neutral towards RMD
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