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Baxter's (BAX) New Launch to Support Complex Critical Care Needs
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Baxter International Inc. (BAX - Free Report) recently announced the U.S. launch of its new Hillrom Progressa+ bed for the intensive care unit (ICU). Progressa+, which offers new technology and features, has been designed to make it easier for nurses to care for patients and support patient recovery.
Baxter’s latest ICU bed, Progressa+ (part of its comprehensive portfolio of beds and surfaces personalized for nearly all care environments) is currently available in the United States. Baxter plans to launch the same in additional markets worldwide throughout the next 18 months.
The latest launch is expected to significantly strengthen Baxter’s foothold in the global critical care space.
Significance of the Launch
The Progressa+ includes technologies designed to help support pulmonary needs, protect skin and support early mobility protocols.
Per management, the new and improved Progressa+ has been designed for the realities of critical care, where there are high requirements by the patient, but clinical staff might be limited. Management believes that the bed, which has been designed based on inputs from the ICU care teams, will likely address challenges, such as reducing strain on nursing resources, reducing the risk of pressure injuries and simplifying patient positioning.
Industry Prospects
Per a report by Allied Market Research, the global ICU beds market was valued at $1,487 million in 2020 and is anticipated to reach $2,419 million by 2030 at a CAGR of 4.9%. Factors like technological developments in ICU beds, growing elderly population and an increase in surgical procedures are expected to drive the market.
Given the market potential, the latest launch is expected to significantly boost Baxter’s global business.
Notable Developments
In May, Baxter signed a definitive agreement to divest its BioPharma Solutions business to Advent International (a global private equity investor) and Warburg Pincus (a renowned global growth investor).
In April, Baxter reported its first-quarter 2023 results, wherein it registered an uptick in its worldwide and International sales at constant exchange rate (CER). Per management, sales performance at CER reflected overall positive demand across the portfolio, supported by a continued recovery in patient and procedure volumes, in combination with generally stabilizing macroeconomic conditions and an improvement in recent supply chain challenges. Sales growth in the quarter was primarily driven by strength in Advanced Surgery, Front Line Care, Pharmaceuticals and Renal Care.
Price Performance
Shares of the company have lost 31.8% in the past year compared with the industry’s 22.1% decline. The S&P 500 has witnessed 15% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Baxter carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 14.2% compared with the industry’s 11.3% rise in the past year.
HealthEquity, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 8.2% against the industry’s 14.3% decline over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 40.2% against the industry’s 22.1% decline over the past year.
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Baxter's (BAX) New Launch to Support Complex Critical Care Needs
Baxter International Inc. (BAX - Free Report) recently announced the U.S. launch of its new Hillrom Progressa+ bed for the intensive care unit (ICU). Progressa+, which offers new technology and features, has been designed to make it easier for nurses to care for patients and support patient recovery.
Baxter’s latest ICU bed, Progressa+ (part of its comprehensive portfolio of beds and surfaces personalized for nearly all care environments) is currently available in the United States. Baxter plans to launch the same in additional markets worldwide throughout the next 18 months.
The latest launch is expected to significantly strengthen Baxter’s foothold in the global critical care space.
Significance of the Launch
The Progressa+ includes technologies designed to help support pulmonary needs, protect skin and support early mobility protocols.
Per management, the new and improved Progressa+ has been designed for the realities of critical care, where there are high requirements by the patient, but clinical staff might be limited. Management believes that the bed, which has been designed based on inputs from the ICU care teams, will likely address challenges, such as reducing strain on nursing resources, reducing the risk of pressure injuries and simplifying patient positioning.
Industry Prospects
Per a report by Allied Market Research, the global ICU beds market was valued at $1,487 million in 2020 and is anticipated to reach $2,419 million by 2030 at a CAGR of 4.9%. Factors like technological developments in ICU beds, growing elderly population and an increase in surgical procedures are expected to drive the market.
Given the market potential, the latest launch is expected to significantly boost Baxter’s global business.
Notable Developments
In May, Baxter signed a definitive agreement to divest its BioPharma Solutions business to Advent International (a global private equity investor) and Warburg Pincus (a renowned global growth investor).
In April, Baxter reported its first-quarter 2023 results, wherein it registered an uptick in its worldwide and International sales at constant exchange rate (CER). Per management, sales performance at CER reflected overall positive demand across the portfolio, supported by a continued recovery in patient and procedure volumes, in combination with generally stabilizing macroeconomic conditions and an improvement in recent supply chain challenges. Sales growth in the quarter was primarily driven by strength in Advanced Surgery, Front Line Care, Pharmaceuticals and Renal Care.
Price Performance
Shares of the company have lost 31.8% in the past year compared with the industry’s 22.1% decline. The S&P 500 has witnessed 15% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Baxter carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 14.2% compared with the industry’s 11.3% rise in the past year.
HealthEquity, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 8.2% against the industry’s 14.3% decline over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 40.2% against the industry’s 22.1% decline over the past year.