The global sleep apnea devices market size was valued at USD 3.7 billion in 2020 and is expected to expand at a compound annual growth rate of 6.2% from 2021 to 2028. Sleep apnea is a sleeping disorder, characterized by irregular breathing, thus providing insufficient oxygen to the brain.
According to an American Sleep Association study published in 2020, an estimated 50 million to 70 million people in the U.S. are suffering from some form of sleep disorders. Moreover, according to Canadian Respiratory Journal in 2014, around 5.4 million adults in Canada were diagnosed with sleep apnea or were at higher risk of developing OSA. According to a study conducted by ResMed in 2018, around 175 million people in Europe were suffering from sleep apnea.
With that in mind, we take a look at some of the current leaders among stocks addressing the sleep tech market opportunity, including: Purple Innovation Inc (NASDAQ:PRPL), APPYEA Inc (OTCMKTS:APYP), and Tempur Sealy International Inc (NYSE:TPX).
Purple Innovation Inc (NASDAQ:PRPL) is a comfort innovation company known for creating the “World’s First No Pressure Mattress”. The company has positioned itself as a digitally native vertical brand with a mission to help people feel and live better through innovative comfort solutions.
Its proprietary gel technology, Hyper-Elastic Polymer, provides a range of benefits that differentiate its offerings from other competitors’ products. The company markets and sells its products through its direct-to-consumer online channels, traditional retail partners, third-party online retailers and its owned retail showrooms.
Purple Innovation Inc (NASDAQ:PRPL) recently announced results for the fourth quarter and year ended December 31, 2020, including a net revenue increase of 39.9% to $173.9 million as compared to $124.3 million and a jump in operating income from 171.1% to $7.5 million as compared to $2.8 million.
“We concluded an amazing year of profitable growth for Purple with a strong fourth quarter performance,” said Joe Megibow, Chief Executive Officer. “Despite the many challenges in 2020, our teams leaned-in and executed successfully, including this holiday season, identifying and capitalizing on market opportunities while at the same time investing in future growth. With our coveted and innovative products, internal manufacturing capabilities, and omni-channel distribution strategy combined with effective marketing and promotional programs, we have doubled our share of the U.S. premium mattress market over the past two years. Fiscal 2021 is off to a solid start and we believe we are well positioned to build on our recent accomplishments and intend to continue investing in capacity expansion, innovation and company showrooms to further expand our market share for years to come.”
Even in light of this news, PRPL hasn’t really done much of anything over the past week, with shares logging no net movement over that period.
Purple Innovation Inc (NASDAQ:PRPL) pulled in sales of $173.9M in its last reported quarterly financials, representing top line growth of 39.9%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($123M against $132.2M, respectively).
APPYEA Inc (OTCMKTS:APYP) promulgates itself as a company offering a patented unique treatment for snoring and sleeping disorders that uses a wristband to communicate with a smart phone.
According to company materials, when the device detects any irregular breathing patterns or snoring, the wristband vibrates at a gently level that is not enough to wake the subject, but just enough to transition them into a lighter sleep phase that after repeated use, trains the brain to breath properly.
APPYEA Inc (OTCMKTS:APYP) most recently announced that it has a non-binding Letter of Intent with SleepX Ltd. from Israel. Todd Violette and Bary Molchadsky signed a binding agreement for Mr. Molchadsky to acquire the control block of APYP based upon certain conditions being met by March 8, 2021.
According to its release, “based upon legal advice regarding the South Dakota Business Corporation Act, Mr. Violette’s control build needs to be ratified by the shareholders. Preparing the legal document necessary to engage in any business transaction are taking additional time to prepare appropriately. The current estimate is a further three weeks for the AppYea lawyers to draft the proper paperwork for the shareholder’s information statement. We have decided to use a service provider to mail every shareholder of record, a postcard directing them to a website that will contain all the information once published. We do not have the web address yet. Shareholders will be able to cast their vote on the website. We have elected this process because of cost and the AppYea plan when implemented provides a reasonable measure to provide shareholders and proxies of shareholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the shareholders, including an opportunity to communicate and to read or hear the proceedings of the meeting concurrently with the proceedings.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action APYP shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -18% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -45%.
APPYEA Inc (OTCMKTS:APYP) generated minor sales according to information released in the company’s most recent quarterly financial report. However, given recent moves by the company, we could see a sharp change in its financial performance trajectory as it begins to tap into the potential of its SleepX opportunity.
Tempur Sealy International Inc (NYSE:TPX) bills itself as a company committed to improving the sleep of more people, every night, all around the world.
As a global leader in the design, manufacture and distribution of bedding products, the company claims to know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, it claims to deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries.
Tempur Sealy International Inc (NYSE:TPX) most recently announced that it priced its offering of $800 million aggregate principal amount of 4.00% senior notes due 2029. The offering was made to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
According to the release, the Notes will be senior unsecured obligations of the Issuer guaranteed by the same entities that guarantee its obligations under its existing credit facility. The terms of the Notes will be determined by negotiations between Tempur Sealy and the initial purchasers. The offering is expected to close on March 25, 2021, subject to satisfaction of customary closing conditions.
And the stock has been acting well over recent days, up something like 4% in that time. Shares of the stock have powered higher over the past month, rallying roughly 18% in that time on strong overall action.
Tempur Sealy International Inc (NYSE:TPX) pulled in sales of $1.1B in its last reported quarterly financials, representing top line growth of 21.3%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($65M against $974.8M, respectively).
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