The ResMed Inc (ASX: RMD) share price has been a positive performer on Thursday.
In morning trade, the sleep treatment company's shares are up almost 2% to $34.08.
This means the ResMed share price is now up 20% over the last two months.
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What's driving the ResMed share price higher?
Investors have been buying the company's shares today following a strong night for its NYSE-listed shares.
ResMed's shares rose almost 5% on Wall Street last night after the US FDA issued a recall for rival Philips' masks used with bilevel positive airway pressure machines and continuous positive airway pressure (CPAP) machines.
The regulator notes that the recalled mask can cause potential injuries or death when use with magnets interferes with certain implanted metallic medical devices and metallic objects in the body. Worryingly, it isn't just the user of the mask that is at risk. The FDA statement explains:
The recalled masks have magnets (placements shown by black circles in the picture below) and can cause potential injuries or death when use of a recalled mask with magnets interferes with certain implanted metallic medical devices and metallic objects in the body. These potential adverse events can occur in people who use the masks, or in people near a person using the mask. Additionally, the recalled Philips masks may be used with other manufacturers' BiPAP and CPAP machines.
Broker responds to the news
A number of brokers have responded positively to this news, giving the ResMed share price an additional boost.
Credit Suisse and Macquarie have both released bullish notes suggesting that this could lead to market share gains for ResMed.
In response, Macquarie has retained its outperform rating and $38.70 price target and Credit Suisse has retained its outperform rating with a $40.00 price target.
