NxStage Kidney Care Inc. – a subsidiary of MA-based manufacturer of innovative dialysis products NxStage Medical Inc. NXTM – recently announced the opening of a new dialysis center in Greenbelt, MD. Located just off the DC Beltway between Baltimore and Washington DC, the center is focused on providing flexible therapies and high-quality personalized care to dialysis patients and their families.
The facility will offer multiple therapy options using NxStage System One including home hemodialysis, home nocturnal hemodialysis, flexible in-center hemodialysis and short-term respite care. Additionally, the center will offer peritoneal dialysis therapy.
NxStage System One is a home hemodialysis system designed to overcome the challenges of home hemodialysis posed by traditional equipment. It is the only truly portable hemodialysis system cleared for home use.
In Dec 2014, the system was cleared by the FDA to perform hemodialysis overnight while the patient is at home. This makes it the first and only hemodialysis machine cleared for this indication.
We believe that the FDA-clearance of the system has opened up home hemodialysis therapy to new segments of patients, which will help improve care for End Stage Renal Disease (ESRD) patients by expanding therapeutic options and flexibility. In our opinion, NxStage will continue to benefit from strong adoption of its hemodialysis systems in the Home segment.
By leveraging NxStage's home leadership and the innovative technology of its System One, NxStage Kidney Care is innovating a dialysis care model that is intended to support and encourage patient-centered care and provide enhanced access to the benefits of home therapy as well as flexible in-center options.
In Feb 2015, NxStage Kidney Care opened two new dialysis centers in the suburbs of Boston, MS. We note that the subsidiary has around 13 dialysis centers and kidney care facilities across the U.S. All the NxStage Kidney Care facilities offer flexible therapies and modern amenities to improve patient care.
In its recently concluded fourth-quarter 2014, NxStage Medical beat our expectations on both fronts. We were particularly impressed with the stellar performance of the company’s System One segment which drove top-line growth.
The company expects total revenue for full-year 2015 in the band of $324–$328 million while NxStage Kidney Care is expected to achieve annual net revenues of $3 million. However, significant investment in NxStage Kidney Care is expected to impact the bottom line, going forward.
Stocks to Consider
Currently, NxStage carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical products industry include Cardiovascular Systems CSII, LeMaitre Vascular LMAT and SurModics SRDX. All three stocks sport a Zacks Rank #1 (Strong Buy).
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