NxStage Nx2me Connected Health Improves Home Hemodialysis

NxStage Medical, Inc. (NASDAQ:NXTM) announced that its Nx2me Connected Health (remote patient management system) reduces home hemodialysis technique failure or conversion to in-center hemodialysis by 29%. Notably, Nx2me Connected Health is a telehealth platform for the collection and delivery of home hemodialysis treatment and patient medical information.

The outcome of 606 Nx2me users and contemporary matched controls was compared.. Per management, technique failure was reduced by 34% in patients who began using Nx2me within 3 months after initiating home hemodialysis, compared to matched controls. Moreover, patients who started using Nx2me during home hemodialysis training were 61% more likely to complete the process.

The Nx2me iPad app is an important component of the Nx2me platform. The app has been designed to make home therapy more user-friendly by capturing data and wirelessly sending it to the respective centers after each treatment. The timely receipt of electronic flowsheets from the app enables early intervention, lowering possibilities of complications and even hospitalization. Also, Nx2me has been integrated with center EMR systems to provide treatment and billing information to physicians.

Developments in Dialysis Platform

The company is consistently trying to expand its Dialysis platform. NxStage announced the FDA approval of its System One platform for solo home hemodialysis treatment in August. In the same month, the company announced that its subsidiary NxStage Kidney Care is partnering with Dialyze Direct to support patients in need of on-site skilled-nursing facilities (SNF) for dialysis treatment in Ohio. NxStage will now leverage on its System One platform and Dialyze Direct’s unique model for treating geriatric SNF patients with end stage renal disease (ESRD).

Market Trends Buoy Optimism

Data from Markets and Markets reveal that the global hemodialysis and peritoneal dialysis market is expected to reach a worth of $83.89 billion by 2021, at a CAGR of 6.0%. In view of the solid prospects, NxStage’s efforts to boost its Dialysis unit raise optimism.

NxStage to Get Acquired

In August, German dialysis provider Fresenius Medical Care signed an agreement to acquire all outstanding shares of NxStage for $30 a share. The transaction has been valued at $2 billion and is subject to close by 2018, on approval of NxStage stockholders and other customary conditions (read more: Fresenius Medical Inks $2B Deal to Take Over NxStage Medical).

Share Price Moves Up

Over the last six months, NxStage has added 11.3%, comparing favorably with the S&P 500’s 9.3%. Furthermore, the current level is way higher than the broader industry’s gain of just 2.9% over the same time frame.

Zacks Rank & Key Picks

NxStage carries a Zacks Rank #4 (Sell).

A few better-ranked medical stocks are athenahealth, Inc. (NASDAQ:ATHN) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, athenahealth, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

athenahealth has a long-term expected earnings growth rate of 22.3%. The stock has rallied roughly 36% over a year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 141.9% in a year.

Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has added 91.2% in a year’s time.

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