Baxter International Inc. (BAX - Free Report) and bioMérieux recently announced an agreement to develop future biomarkers for prompt identification and treatment of acute kidney injury (“AKI”) at the International Symposium on Intensive Care and Emergency Medicine. This is expected to boost Baxter’s Acute Therapies business apart from fortifying its foothold in the global renal care market.
However, following the announcement, shares of this Zacks Rank #2 (Buy) company fell 0.2% to $76.95 at close.
Details about the deal have been kept under the wraps.
For investors’ notice, bioMérieux is a leader in the field of in vitro diagnostics, serving more than 160 countries.
Acute Therapies Gets a Boost
Baxter’s Acute Therapies provide industry-leading technologies and services that help deliver multi-organ support in the ICU. Notably, the company’s flagship PRISMAFLEX System is designed to support the recovery of critically ill patients with AKI.
It is encouraging to note that in the last reported quarter, Baxter’s Acute Therapies business grew 12% at constant currency, driven by increased global demand for the company’s continuous renal replacement therapies.
Additionally, management at Baxter expects the Acute Therapies business to grow 7-8% in 2019.
The International Society of Nephrology opines that each year about 13.3 million cases of AKI are detected globally.
Mordor Intelligence states that the global renal medical devices and services market is expected to see a CAGR of about 6% by 2023. The rising incidence of chronic kidney diseases across the globe currently fuel the market.
Some other key players in the renal care space are DaVita (DVA - Free Report) and Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) . DaVita Kidney Care, an operating division of the company, has been successfully driving DaVita’s top line. Additionally, Fresenius Medical offers a wide spectrum of dialysis products like modular machine components, dialyzers, bloodline systems.
Over the past year, shares of Baxter have rallied 15.3% compared with the industry’s 6.8% rise. The current level is also higher than the S&P 500 index’s 4.4% rally.
Another top-ranked stock in the broader medical space is Veeva Systems (VEEV - Free Report) .
Veeva Systems’ long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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