Shares of medical device maker ResMed (RMD) are tumbling in intraday trading Monday as markets react to a pair of 澳洲幸运5官方开奖结果体彩网:Phase 3 clinical trials from drugmaker Eli Lilly (LLY) released Friday that could have an impact on ResMed𝔍's ﷽future business.

Friday afternoon, Eli Lilly released data from two clinical studies that showed the capability of one of the company's 澳洲幸运5官方开奖结果体彩网:popular weight-loss drugs, Z♉epbound, to reduce the severity of sleep apnea without the need for a mask that is typically used to treat the disease.

Why ResMed Is Slipping Monday

Sleep apnea is ResMed's primary area of treatment, according to its own earnings materials. The company sells medical devices like sleep apnea masks, and generated about $1.2 billion in revenue, mostly from device sales, in its most recent quarter.

ResMed said in its most recent earnings report that its data shows a positive correlation between patients who already use a GLP-1 weight-loss drug, like Zepbound or Novo Nordisk's (NVO) Ozempic, also seeking treatment for sleep apnea like a sleeping mask. That means the market that Eli Lilly or other GLP-1 providers could take from companies like ResMed is sizable if the weight-loss drugs can reduce the severity of sleep apnea without needing a mask.

Lilly's studies 澳洲幸运5官方开奖结果体彩网:follow another in April that also found that Zepbound reduced the number of times a sleeping patient's airflow was restricted. The company said in Friday's release that it has submitted the drug to the 澳洲幸运5官方开奖结果体彩网:Food and Drug Administration (FDA) to get sleep apnea added to the label as a condition Zepbound can treat, and said it expects "🐠regulatory action" as early as the end of 2024.

ResMed stock is down 11% to $182.93 as of 10:30 a.m. ET Monday. Eli Lilly shares are up 0.5% to $888.88.