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Outset Medical (OM) Inks Multi-Year Deal to Boost Home Dialysis
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Outset Medical, Inc. (OM - Free Report) recently announced a multi-year agreement with U.S. Renal Care. The deal is designed to provide patients and caregivers access to innovative home dialysis with OM’s Tablo Hemodialysis System across the United States.
Tablo, which is indicated for use from the hospital to the home, serves as a single enterprise solution that can be utilized across the continuum of care. This, in turn, allows dialysis to be delivered irrespective of time and place.
The latest agreement is expected to significantly boost Outset Medical’s business and solidify its foothold in the niche space.
Rationale Behind the Agreement
Per Outset Medical, studies have shown that patients with end-stage kidney disease (ESKD) are mentally and physically healthier while dialyzing at home. However, an insignificant ESKD patient population (3%) currently performs home hemodialysis. This is primarily due to historically complicated systems that made it too difficult to undertake or sustain.
Under the multi-year agreement, Outset Medical’s Tablo Hemodialysis System can be utilized by U.S. Renal Care as a home dialysis option throughout the 33 states in which it provides care.
Outset Medical believes that expanding treatment options in the communities served by U.S. Renal Care will aid in meeting the growing demand of dialysis patients seeking treatment at home. Management believes that the collaboration with U.S Renal Care will likely provide dialysis patients with options for where, when and how they want to dialyze.
Per U.S. Renal Care’s management, with the multi-year agreement with Outset Medical, the company expects to continue providing its patients and caregivers access to lifesaving dialysis treatment in an easy-to-operate system in the comfort of their homes.
Industry Prospects
Per a report by Precedence Research, the global end-stage renal disease market was estimated to be $105.22 billion in 2022 and is anticipated to reach $372.31 billion by 2032 at a CAGR of approximately 13.5%. Factors like the increase in kidney failure patients and the introduction of technologically advanced products are expected to drive the market.
Given the market potential, the latest agreement is expected to significantly boost Outset Medical's business.
Recent Developments
This month, Outset Medical announced its partnership with the American Nephrology Nurses Association as a member of its new Partnership Advisory Council.
In February, Outset Medical reported its fourth-quarter 2023 results, wherein management stated that its results for the fourth quarter and full year reflect the scale it has built in the acute setting and the progress the company is making to expand Tablo’s use at home. The growth in both end markets contributed to a 34% increase in the Tablo installed base and nearly 50% growth in consumable revenue during the period.
Price Performance
Shares of Outset Medical have lost 87.4% in the past year compared with the industry’s 21.8% decline. The S&P 500 has witnessed 21.7% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Outset Medical carries a Zacks Rank #4 (Sell).
DaVita, carrying a Zacks Rank #2 (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 (Strong Buy) stocks here.
DaVita’s shares have gained 51.6% compared with the industry’s 10% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.5% against the industry’s 9.9% decline 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 44.7% compared with the industry’s 0.4% rise in the past year.
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Outset Medical (OM) Inks Multi-Year Deal to Boost Home Dialysis
Outset Medical, Inc. (OM - Free Report) recently announced a multi-year agreement with U.S. Renal Care. The deal is designed to provide patients and caregivers access to innovative home dialysis with OM’s Tablo Hemodialysis System across the United States.
Tablo, which is indicated for use from the hospital to the home, serves as a single enterprise solution that can be utilized across the continuum of care. This, in turn, allows dialysis to be delivered irrespective of time and place.
The latest agreement is expected to significantly boost Outset Medical’s business and solidify its foothold in the niche space.
Rationale Behind the Agreement
Per Outset Medical, studies have shown that patients with end-stage kidney disease (ESKD) are mentally and physically healthier while dialyzing at home. However, an insignificant ESKD patient population (3%) currently performs home hemodialysis. This is primarily due to historically complicated systems that made it too difficult to undertake or sustain.
Under the multi-year agreement, Outset Medical’s Tablo Hemodialysis System can be utilized by U.S. Renal Care as a home dialysis option throughout the 33 states in which it provides care.
Outset Medical believes that expanding treatment options in the communities served by U.S. Renal Care will aid in meeting the growing demand of dialysis patients seeking treatment at home. Management believes that the collaboration with U.S Renal Care will likely provide dialysis patients with options for where, when and how they want to dialyze.
Per U.S. Renal Care’s management, with the multi-year agreement with Outset Medical, the company expects to continue providing its patients and caregivers access to lifesaving dialysis treatment in an easy-to-operate system in the comfort of their homes.
Industry Prospects
Per a report by Precedence Research, the global end-stage renal disease market was estimated to be $105.22 billion in 2022 and is anticipated to reach $372.31 billion by 2032 at a CAGR of approximately 13.5%. Factors like the increase in kidney failure patients and the introduction of technologically advanced products are expected to drive the market.
Given the market potential, the latest agreement is expected to significantly boost Outset Medical's business.
Recent Developments
This month, Outset Medical announced its partnership with the American Nephrology Nurses Association as a member of its new Partnership Advisory Council.
In February, Outset Medical reported its fourth-quarter 2023 results, wherein management stated that its results for the fourth quarter and full year reflect the scale it has built in the acute setting and the progress the company is making to expand Tablo’s use at home. The growth in both end markets contributed to a 34% increase in the Tablo installed base and nearly 50% growth in consumable revenue during the period.
Price Performance
Shares of Outset Medical have lost 87.4% in the past year compared with the industry’s 21.8% decline. The S&P 500 has witnessed 21.7% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Outset Medical carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Ecolab Inc. (ECL - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, carrying a Zacks Rank #2 (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 (Strong Buy) stocks here.
DaVita’s shares have gained 51.6% compared with the industry’s 10% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.5% against the industry’s 9.9% decline 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 44.7% compared with the industry’s 0.4% rise in the past year.