Why ResMed Stock Exploded Higher This Week
Through Thursday's close, shares of the medical equipment company ResMed (NYSE: RMD) were up by a healthy 10% so far this week. ResMed's stock is marching higher this week in response to Koninklijke Philips' (NYSE: PHG) decision to voluntarily recall approximately 3.5 million ventilation devices for treating sleep apnea.
Philips is recalling the devices over the use of a polyester-based polyurethane (PE-PUR) sound abatement foam that could be toxic if inhaled or ingested. ResMed stands to benefit financially from this massive recall, given that sleep apnea devices are one of the company's core product segments.
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Source Fool.com
