Baxter International Inc. BAX recently announced that its novel dialysis membrane, Theranova has been granted the FDA De Novo application.
Notably, Theranova was developed to deliver expanded hemodialysis (HDx) therapy, which filters a wider range of molecules from the blood than traditional hemodialysis (HD) filters, like high-flux membranes, by aiming for efficient removal of conventional and large middle molecules. These middle molecules may be related to inflammation and cardiovascular disease in patients afflicted with kidney failure.
By granting a De Novo application, the FDA is paving the path for a new class of dialyzer technology with unique performance standards.
This regulatory clearance is expected to boost the company’s Renal Care business.
More on Theranova
HDx is performed the same way as conventional HD, with only a change of the dialyzer membrane needed. Theranova dialyzer’s unique membrane design brings in a filtration profile that more closely imitates that of the natural kidney and can be utilized with existing hemodialysis machines.
Patients are currently treated with HDx enabled by Theranova in more than 40 countries. Baxter is taking every possible step in the United States to ensure that medical providers can also offer the new therapy efficiently to their patients who are already on HD.
Due to the novel nature of Theranova, Baxter conducted a randomized controlled clinical study in the United States that evaluated the safety and proficiency of HDx therapy enabled by Theranova. The study proved that the HDx therapy offered by Theranova is a promising alternative to what is currently available because it delivers a filtration profile that is closer to the natural kidney.
In August 2020, Baxter attained FDA Emergency Use Authorization (EUA) for Regiocit, the company’s replacement solution that contains citrate for regional citrate anticoagulation of the extracorporeal circuit. Under the EUA, Regiocit is cleared to be used as a replacement solution only in adult patients being treated with continuous renal replacement therapy (CRRT) and for whom regional citrate anticoagulation is suitable during the COVID-19 pandemic. This also boosted the company’s Renal Care business.
Per a report by Allied Market Research, the global dialysis market size was valued at $86.62 billion in 2016, and is estimated to reach $118.51 billion by 2023, expanding at a CAGR of 4.5% from 2017 to 2023. Hence, this FDA clearance is well-timed.
Over the past six months, the stock has gained 0.1% compared with the broader industry’s growth of 10%.
Zacks Rank & Stocks Worth a Look
Baxter currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks from the broader medical space include OPKO Health OPK, Surmodics SRDX and Merit Medical Systems MMSI.
OPKO Health’s long-term earnings growth rate is estimated at 12%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently carries a Zacks Rank #2.
Merit Medical Systems’ long-term earnings growth rate is estimated at 11.9%. It currently carries a Zacks Rank #2.
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