Baxter International Inc. BAX recently received Emergency Use Authorization (EUA) from the FDA for Regiocit, which is the only authorized citrate-based replacement solution available in the United States for use in continuous renal replacement therapy (CRRT) during the COVID-19 pandemic. This also marks Baxter’s fourth EUA during this public health crisis, highlighting its focus on catering to the needs of critically ill patients.
Although Regiocit has not been cleared by the FDA in the United States, it is presently in use in countries worldwide, including Europe and Asia. Initially, a limited shipment will be available in United States on an immediate basis, while in the coming weeks and months production will be ramped up.
This development is likely to further bolster Baxter’s already robust Acute Therapies portfolio.
Significance of Regiocit During COVID-19 Pandemic
With the ongoing COVID-19 pandemic, demand for CRRT continues to rise and by providing Regiocit, Baxter has brought in a significant new option to help healthcare providers in the United States to optimize care for critically ill patients who require CRRT and regional citrate anticoagulation.
Regiocit supports the need for regional citrate anticoagulation in patients who are at an increased risk of bleeding during CRRT.
It is important to mention here that Baxter has continued to support healthcare providers during the ongoing crisis by providing CRRT machines, fluids and sets to address patient needs globally.
Notably, Baxter has received EUAs for several of its products that are utilized in CRRT, which include Oxiris, the HF20 Set and the ST Set. Although the FDA has not cleared or approved the abovementioned products, the EUAs have allowed these to be utilized in CRRT during the pandemic.
Baxter’s Robust Acute Therapies Profile
Improving utilization for CRRT globally, and increased demand for multi-organ support products continues to drive Baxter’s performance in acute therapies. Per management, the company plans to bring additional markets on board through 2020.
Moreover, the company has been witnessing tremendous demand for many products, which includes its PrisMax and PRISMAFLEX, CRRT, devices and associated consumables.
In fact, per second-quarter 2020 results, revenues in Acute Therapies business were $186 million, reflecting growth of 40.9% on a reported basis and 45% on a constant currency (cc) basis. Per management, increased demand for acute therapies products due to the COVID-19 pandemic contributed to the improvement.
Per a report published in MarketWatch, the global CRRT market size is estimated to reach $788.4 million by 2026 from $755.5 million in 2020, witnessing a CAGR of 4% during the forecast period (2021-2026). Hence, this development is a well-timed one for Baxter.
Over the past year, shares of this Zacks Rank #5 (Strong Sell) company have lost 4.9%, compared with the industry’s decline of 5.2%.
Stocks to Consider
Some better-ranked stocks from the broader medical space include West Pharmaceutical Services, Inc. WST, Thermo Fisher Scientific Inc. TMO and PerkinElmer, Inc. PKI. While both PerkinElmer and Thermo Fisher sport a Zacks Rank #1 (Strong Buy), West Pharmaceutical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher has an estimated long-term earnings growth rate of 15%.
PerkinElmer has a projected long-term earnings growth rate of 17.4%.
West Pharmaceutical has a projected long-term earnings growth rate of 17.4%.
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