Back to top

Analyst Blog

NxStage Medical Inc. (NXTM - Free Report) , a leading developer of products and services for patients suffering from kidney failure, announced a three-year agreement with Satellite Healthcare, the sixth largest provider of patient-centered dialysis and kidney disease services in the U.S.

Under the terms of the deal, Satellite Healthcare aims to introduce NxStage Medical's innovative Nx2me Connected Health platform to its home hemodialysis (HHD) patients and thus enhance the outcome. In this regard, Nx2me Clinician Portal (Nx2me iPad app) is a path breaking software that enhances wireless monitoring and capturing of treatment data of home therapy patients (by the dialysis center staff).

Coming to share price movement, NxStage Medical surged a nominal 0.04% to close at $25 a share following the news. A further analysis shows bullish market trends as the company represents a promising year-to-date return of 14.1%, higher than the S&P 500’s 5.7% over the same time frame.

The partnership also focuses on Satellite Healthcare’s Re-Imagine Home platform – a long-term initiative of the company to enhance the home dialysis market structure. In fact, in the recent past, Baxter International also signed a strategic partnership with Satellite Healthcare to introduce high-end technologies in peritoneal dialysis, hemodialysis and continuous renal replacement therapy to its patients.

Our Take

In the just-reported second quarter of 2016, NxStage Medical reported impressive results from the Nx2me Connected Health platform – recording ‘reduced burden, better oversight, and improved efficiency’. We believe that the recent development further buoys optimism in this regard.

Meanwhile, a report by the Markets And Markets forecasts that the global hemodialysis & peritoneal dialysis market will reach a worth of $93.83 billion by 2020. This encouraging data hints at more scope for NxStage Medical to benefit from the latest tie-up.

Zacks Rank & Stocks to Consider

Currently NxStage Medical carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector are GW Pharmaceuticals Plc. (GWPH - Free Report) , Lantheus Holdings Inc. (LNTH - Free Report) and Quidel Corp. (QDEL - Free Report) . Notably, all three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals has a solid year-to-date return of 91%, way better than the S&P 500’s 5.7% over the same time frame. Notably, the company posted a positive earnings surprise in the last four quarters, the average being 41.6%.

Lantheus Holdings posted a stupendous year-to-date return of 143.4%. Notably, the company expects earnings growth rate of 12.5% over the next 3 to 5 years.

Quidel Corp. has a positive year-to-date return of 2.9%. The stock has a healthy expected earnings growth rate of 20%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

NXSTAGE MEDICAL (NXTM) - free report >>

GW PHARMA-ADR (GWPH) - free report >>

QUIDEL CORP (QDEL) - free report >>

LANTHEUS HLDGS (LNTH) - free report >>