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Baxter (BAX) Gets FDA Nod for Homechoice Claria APD System

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Baxter International Inc. (BAX - Free Report) recently attained FDA approval for the Homechoice Claria automated peritoneal dialysis (APD) system with Sharesource connectivity platform. It is worth mentioning here that the clearance comes on the heels of the recent finalization of the End-Stage Renal Disease (ESRD) Treatment Choices (ETC) payment model, the goal of which is to drastically increase the number of new patients with kidney failure who receive home dialysis and/or organ transplants.

This approval is likely to boost Baxter’s Renal Care business.

More on Homechoice Claria

Homechoice Claria brings together a simple user interface and the benefits of Sharesource, which is the only two-way remote patient management platform for patients on peritoneal dialysis (PD) available in the United States for patients with kidney failure. Notably, Homechoice Claria has been approved for both adult and pediatric populations.

Given that one in four APD patients all over the world benefits from Baxter’s two-way remote patient management technology, Sharesource equips patients and clinicians with the ability to remainclosely connected to proactively acknowledge important aspects of PD therapy. On the back of the platform’s precise, daily treatment data and analytics, doctors can treat patients remotely and make timely therapy decisions while patients are safe at home.

Clinicians using Homechoice Claria with Sharesource also have more visibility to patient adherence patterns, which may lead to early intervention and enhanced focus on proactive care.

Homechoice Claria offers improved features that ensure extra convenience for patients and medical teams along with best-in-class educational companions to further streamline the PD experience.

With the addition of Homechoice Claria to Baxter’s APD cycler portfolio, the company is likely to strengthen its commitment to bring the benefits of Sharesource remote patient management to the maximum number of clinics and patients in the United States.

Notable Developments

In August 2020, Baxter announced that its novel dialysis membrane, Theranova, has been granted the FDA De Novo application. Notably, Theranova was developed to deliver expanded hemodialysis therapy, which filters a wider range of molecules from the blood than traditional hemodialysis filters like high-flux membranes by aiming for efficient removal of conventional and large middle molecules. These middle molecules may be related to inflammation and cardiovascular disease in patients with kidney failure. This regulatory clearance is expected to boost the company’s Renal Care business.

In the same month, Baxter attained FDA Emergency Use Authorization (EUA) for Regiocit, the company’s replacement solution that contains citrate for regional citrate anticoagulation of the extracorporeal circuit. Under the EUA, Regiocit is cleared to be used as a replacement solution only in adult patients being treated with continuous renal replacement therapy and for whom regional citrate anticoagulation is suitable during the COVID-19 pandemic. This also boosted the company’s Renal Care business.

Market Prospects

Per a report by Allied Market Research, the global dialysis market size was valued at $86.62 billion in 2016 and is estimated to reach $118.51 billion by 2023, expanding at a CAGR of 4.5%. Hence, this FDA clearance is well-timed.

Price Performance

Over the past six months, the stock has declined 12.3% against the broader industry’s growth of 10.7%.

Zacks Rank & Stocks Worth a Look

Baxter currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space include Align Technology (ALGN - Free Report) , Cardinal Health (CAH - Free Report) and Thermo Fisher Scientific (TMO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology has a projected long-term earnings growth rate of 18.3%.

Cardinal Health has a projected long-term earnings growth rate of 5.5%.

Thermo Fisher has an estimated long-term earnings growth rate of 18%.

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