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Baxter's (BAX) Latest FDA Approval to Boost Infusion Therapy
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Baxter International Inc. (BAX - Free Report) recently received the FDA’s 510(k) clearance for its Novum IQ large volume infusion pump (LVP) with Dose IQ Safety Software. Adding LVP modality to the Novum IQ Infusion Platform, which includes Baxter’s syringe infusion pump (SYR) with Dose IQ Safety Software, powered by the IQ Enterprise Connectivity Suite, is expected to enable clinicians to utilize a single, integrated system across a variety of patient care settings.
Baxter expects to expand the platform in the future via continued product development and additional regulatory submissions.
The Novum IQ LVP and Novum IQ SYR are currently available to order in the United States.
The latest regulatory clearance is expected to significantly boost Baxter’s Medical Products and Therapies business and solidify its foothold in the infusion therapy space.
Significance of the Approval
Health systems have experienced new and increased challenges related to clinician turnover, burnout and staffing shortages, along with existing priorities focused on reducing costs and improving patient outcomes. Per Baxter, the Novum IQ Infusion Platform is expected to integrate user experience across its LVP and SYR pumps and help to reduce the burden of non-critical tasks so that nurses, pharmacists and other clinicians can focus more on patient care.
The company also believes that its Novum IQ LVP will likely support the administration of high-volume infusions at faster rates, while Novum IQ SYR is expected to support the delivery of small, precise amounts of fluid at lower rates, often in pediatric, neonatal or anesthesia care settings.
Per management, offering Novum IQ large volume and syringe infusion pumps is expected to unlock the potential of advanced, intuitive technologies that customers seek to meet their needs.
Industry Prospects
Per a report by Reports and Data, the global infusion therapy market was $44.2 billion in 2022 and is anticipated to reach $74.67 billion in 2032 at a CAGR of 6%. Factors like the increasing prevalence of chronic diseases, the introduction of novel medication delivery techniques and technological developments in infusion pumps are expected to drive the market.
Given the market potential, the latest regulatory approval is expected to boost Baxter’s business.
Notable Development
In February, Baxter reported its fourth-quarter 2023 results, wherein it registered a solid uptick in its worldwide sales. Per management, the fourth-quarter sales performance was partially driven by better-than-expected sales in the company’s Medical Products and Therapies segment. Sales growth in the quarter was driven by strong performance in the Healthcare Systems and Technologies segment, partially reflecting increased demand for Medical Products and Therapies products.
During the reported quarter, Baxter also announced the FDA Premarket Approval and subsequent U.S. launch of PERCLOT Absorbable Hemostatic Powder.
Price Performance
Shares of the company have gained 7.6% in the past year compared with the industry’s 4.6% rise and the S&P 500's 27.6% growth.
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 DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 68.7% compared with the industry’s 23.2% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 46.1% compared with the industry’s 11.8% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 49.7% compared with the industry’s 5.2% rise in the past year.
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Baxter's (BAX) Latest FDA Approval to Boost Infusion Therapy
Baxter International Inc. (BAX - Free Report) recently received the FDA’s 510(k) clearance for its Novum IQ large volume infusion pump (LVP) with Dose IQ Safety Software. Adding LVP modality to the Novum IQ Infusion Platform, which includes Baxter’s syringe infusion pump (SYR) with Dose IQ Safety Software, powered by the IQ Enterprise Connectivity Suite, is expected to enable clinicians to utilize a single, integrated system across a variety of patient care settings.
Baxter expects to expand the platform in the future via continued product development and additional regulatory submissions.
The Novum IQ LVP and Novum IQ SYR are currently available to order in the United States.
The latest regulatory clearance is expected to significantly boost Baxter’s Medical Products and Therapies business and solidify its foothold in the infusion therapy space.
Significance of the Approval
Health systems have experienced new and increased challenges related to clinician turnover, burnout and staffing shortages, along with existing priorities focused on reducing costs and improving patient outcomes. Per Baxter, the Novum IQ Infusion Platform is expected to integrate user experience across its LVP and SYR pumps and help to reduce the burden of non-critical tasks so that nurses, pharmacists and other clinicians can focus more on patient care.
The company also believes that its Novum IQ LVP will likely support the administration of high-volume infusions at faster rates, while Novum IQ SYR is expected to support the delivery of small, precise amounts of fluid at lower rates, often in pediatric, neonatal or anesthesia care settings.
Per management, offering Novum IQ large volume and syringe infusion pumps is expected to unlock the potential of advanced, intuitive technologies that customers seek to meet their needs.
Industry Prospects
Per a report by Reports and Data, the global infusion therapy market was $44.2 billion in 2022 and is anticipated to reach $74.67 billion in 2032 at a CAGR of 6%. Factors like the increasing prevalence of chronic diseases, the introduction of novel medication delivery techniques and technological developments in infusion pumps are expected to drive the market.
Given the market potential, the latest regulatory approval is expected to boost Baxter’s business.
Notable Development
In February, Baxter reported its fourth-quarter 2023 results, wherein it registered a solid uptick in its worldwide sales. Per management, the fourth-quarter sales performance was partially driven by better-than-expected sales in the company’s Medical Products and Therapies segment. Sales growth in the quarter was driven by strong performance in the Healthcare Systems and Technologies segment, partially reflecting increased demand for Medical Products and Therapies products.
During the reported quarter, Baxter also announced the FDA Premarket Approval and subsequent U.S. launch of PERCLOT Absorbable Hemostatic Powder.
Price Performance
Shares of the company have gained 7.6% in the past year compared with the industry’s 4.6% rise and the S&P 500's 27.6% growth.
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 DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 68.7% compared with the industry’s 23.2% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 46.1% compared with the industry’s 11.8% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 49.7% compared with the industry’s 5.2% rise in the past year.