ResMed Halts Astral Ventilator Sales After FDA Recall, Takes $75M Hit
RMD sits 17% above its 52-week low of $180.265 on elevated volume (2.5× avg).
Summary
ResMed will stop selling its Astral ventilator in fiscal 2027 following an FDA recall tied to five serious injuries. The company will redirect scarce components to repairs and expects a $75 million financial impact. This is a material setback for a key product line, coming just days after the company issued its first-ever revenue guidance and posted a Q4 beat that still sent shares down 5.9%. Separately, ResMed plans over $1.85 billion in dividends and buybacks this fiscal year, funded by operating cash flow and the $490 million MatrixCare sale proceeds. Wells Fargo trimmed its price target to $215 from $225, reflecting near-term headwinds. The ventilator halt introduces new regulatory and revenue risk that could pressure the stock further.
At the time of this announcement, RMD was trading at $211.00 on NYSE in the Life Sciences sector, with a market capitalization of approximately $30.7B. The 52-week trading range was $180.27 to $293.81. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.