MINNEAPOLIS - Nuwellis, Inc. (NASDAQ:NUWE), a medical technology firm, announced today the extension of its pilot phase with DaVita Inc . (NYSE:DVA), a leading provider of kidney care services. The collaboration, initially set to evaluate the Aquadex ultrafiltration therapy, has been extended until August 31, 2024, to allow further assessment of the therapy's effectiveness in treating adult patients with congestive heart failure.
The Aquadex SmartFlow system, which is at the core of this partnership, is designed to remove excess fluid from patients who do not respond to medical management, including diuretics. The system is indicated for both temporary and extended use in patients weighing 20 kg or more.
This extension provides the opportunity for both companies to continue exploring the potential of ultrafiltration therapy in a hospital setting and may lead to a long-term supply agreement for up to a decade, contingent upon the pilot's outcomes. The agreement underscores the commitment of Nuwellis and DaVita to advance patient care through innovative treatments.
DaVita currently operates 2,724 outpatient dialysis centers in the United States and has a significant presence in 11 other countries, serving a large patient population. The extension of the pilot program with Nuwellis reflects DaVita's ongoing effort to improve the quality of life for patients across the spectrum of kidney health care.
The Aquadex SmartFlow system is a part of Nuwellis's broader strategy to address fluid overload in patients, a condition that can complicate various medical conditions, including heart failure. By providing a method to remove excess fluid, the system aims to alleviate related symptoms and improve patient outcomes.
The statements in this announcement include forward-looking predictions based on current expectations and are subject to risks and uncertainties. Factors such as market acceptance, commercialization efforts, and the impact of the COVID-19 pandemic could influence the future events related to this collaboration.
This news is based on a press release statement from Nuwellis, Inc. and does not include any speculative content or endorsements of claims. The information presented is focused on the factual aspects of the extended pilot phase and the potential implications for patient care through the use of the Aquadex SmartFlow system.
In other recent news, Nuwellis has secured a significant deal with a major U.S. integrated delivery network, extending the reach of its Aquadex therapy across the network's 50-hospital system. This development is expected to enhance patient care for those suffering from conditions such as heart failure and fluid overload who do not respond to diuretics.
The agreement follows positive clinical data presented at the Technology and Heart Failure Therapeutics conference, indicating substantial reductions in hospitalization and heart failure events with Aquadex treatment.
In financial news, Nuwellis reported a modest 2% year-over-year revenue growth in Q1 2024, totaling $1.9 million. This increase was primarily driven by an 11% rise in consumable utilization, especially in the pediatric sector, which saw a significant 40% revenue boost. Still, heart failure revenue declined by 38% due to reduced utilization and consult sales. The company expects an increase in capital sales in the upcoming year, backed by a strong pipeline of new accounts.
These recent developments underscore Nuwellis's ongoing efforts to expand its Aquadex therapy reach and improve its financial performance.
InvestingPro Insights
As Nuwellis, Inc. (NASDAQ:NUWE) extends its pilot phase with DaVita Inc. and continues to explore the potential of its Aquadex SmartFlow system, investors and industry observers are closely monitoring the company's financial health and stock performance. According to InvestingPro, Nuwellis holds more cash than debt on its balance sheet, which could provide a measure of stability as it pursues growth and development opportunities.
Still, the company has been quickly burning through cash and the stock has experienced significant volatility, with a notable price drop over the last week. This could reflect investor concerns about the company's short-term prospects, despite the potential long-term benefits of the collaboration with DaVita. Nuwellis's stock generally trades with high price volatility, which may appeal to certain investors but also suggests a degree of risk.
InvestingPro Data further reveals that Nuwellis has a market capitalization of just 4.11 million USD, and the company is trading at a low revenue valuation multiple. With a revenue growth of 5.35% over the last twelve months as of Q1 2024, the company is showing some positive momentum, although it is important to note that analysts do not anticipate Nuwellis will be profitable this year.
For those interested in a deeper dive into the financial metrics and future outlook of Nuwellis, InvestingPro offers additional tips and insights. There are currently 14 more InvestingPro Tips available, which can provide valuable context for understanding the company's financial position and the implications for investors. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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