Baxter International Inc. (BAX - Free Report) and the American Society for Parenteral and Enteral Nutrition (ASPEN) recently launched an educational video series on the appropriate use of parenteral nutrition (PN). Notably, this is part of SmartPN, a collaboration between Baxter ad ASPEN, which came into effect in 2017.
The video includes four parts, viz, The General Approach, The Role of Supplemental Parenteral Nutrition, Avoiding Overfeeding and Glucose Control Management, and Venous Catheter Selection, Care and Complication Prevention.
The latest development is likely to boost Baxter’s Clinical Nutrition business.
SmartPN is a comprehensive collaboration providing healthcare professionals with educational tools on the appropriate use of PN therapy to help reduce clinical malnutrition.
For investors’ notice, PN is the intravenous administration of nourishment to those who cannot eat or absorb enough food to maintain good nutrition. PN plays a critical role in reducing malnutrition and achieving the best possible health outcomes.
Going by an AHRQ (Agency for Healthcare Research and Quality) report, malnutrition occurs among 8.1% of non-maternal, non-neonatal hospitalized patients in the United States. Additionally, patients diagnosed with malnutrition have a longer length of stay, higher cost and have five times more chances of death.
Trade Market Research projects that the global clinical nutrition market will see a CAGR of 5.8% between 2018 and 2023.
Thus, the latest move has been a well-timed one for Baxter.
Clinical Nutrition in Focus
Baxter’s Clinical Nutrition solutions provide life-saving nutrition options to patients. The company offers diverse and flexible nutrition solutions to meet different PN formulation needs.
In the last reported quarter, the unit contributed 7.8% to Baxter’s net sales. The business saw strong growth internationally. In fact, management expects positive contribution from the Clinical Nutrition business in the next quarter.
We believe developments such as these are likely to provide cushion to the stock, which has rallied 14.8% compared with the industry’s rise of 18.6% in a year’s time. However, the current level is higher than the S&P 500 index’s 13% increase.
The stock currently has a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Masimo Corporation (MASI - Free Report) and Inogen, Inc. (INGN - Free Report) .
Intuitive Surgical has an expected long-term earnings growth of 14.7%. The stock has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masimo’s long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.
Inogen’s long-term earnings growth rate is estimated at 24.5%. The stock carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>