Baxter International Inc. (BAX - Free Report) recently announced the enrollment of the first group of patients under a U.S. clinical trial for the company’s flagship peritoneal dialysis (PD) solution generation system. Notably, the FDA has also approved the trial. For investors’ notice, the system is not yet available for use by patients.
However, following the announcement, Baxter’s shares lost 0.1% to $66.17 at close. However, over the past year, shares of Baxter have declined 4.5% compared with the industry’s 11.1% fall. The current level also compares favorably with the S&P 500 index’s 7.6% decline.
More on the PD System
Baxter is a leader in serving end-stage renal disease (ESRD) patients who require PD. The company’s AMIA automated peritoneal dialysis (APD) with the SHARESOURCE remote patient management platform is the first and only APD system to include user-friendly features that help guide end-stage renal disease patients.
The innovative system is designed to be more flexible to meet individual patient needs, while simplifying how clinicians manage therapy.
Baxter’s other kidney care products include HDx Enabled by THERANOVA dialysis therapy for ESRD patients.
Kidney Care Demand Shoots Up in US
ESRD, the last stage of chronic kidney disease (CKD), is possibly the ninth leading cause of death in the United States. A study of JOJ Urology and Nephrology states that ESRD — the last stage of CKD — impacts over 700,000 Americans annually. Consequently, renal care companies are raking in billions on increasing demand for dialysis.
Global Market Insights expects the global dialysis market to reach a worth of more than $104 billion by 2024.
Hence the latest development has been a well-timed one for the Illinois-based medical technology bigwig.
Other key players in the space are DaVita Inc. (DVA - Free Report) and Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) . DaVita’s Kidney Care business lends it a competitive edge in the MedTech space. Meanwhile, Fresenius Medical offers a wide spectrum of dialysis products like modular machine components, dialyzers, bloodline systems, hemodialysis solutions and others.
Zacks Rank & Key Pick
Baxter currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the broader medical space is Veeva Systems Inc. (VEEV - Free Report) .
Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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