Procida, Chimenti and Santella tried to sell their invention to ResMed in 2009, to no avail.

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This group includes such innovators as Peter Farrell of ResMed, a medical-device maker that employs 600 workers.

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The two stocks I recommended, Eli Lilly and ResMed, were both in the healthcare business, which has suddenly perked up.

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San Diego-based ResMed (No. 27) is right in the thick of it.

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ResMed, in San Diego, California, ranks second in the U.S. market for devices that help people suffering sleep apnea, a disorder that affects the breathing.

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ResMed Inc. engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders.

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Also, with respect to return on assets (ROA), ResMed looks attractive at 13.7%, a lofty premium compared to the peer group average of 6.7%.

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Fortunately for the trio, their invention had already drawn the attention of ResMed, a publicly-traded medical supplies company that specializes in contraptions built for people with sleep apnea.

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You'll recognize some of the companies on this year's select list of ten--Hooper Holmes, Jakks Pacific, ResMed, Shuffle Master--because they're among our 12 Companies To Watch (pp. 240-276).

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But ResMed is knocking the wind out of Respironics.

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Shares of ResMed, in Poway, Calif.

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