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Baxter International Inc. BAX recently received U.S. FDA clearance of its next-generation Artificial Kidney 98 (AK 98) dialysis machine, which can be used simultaneously with the company’s novel dialysis membrane — Theranova. The latest technology has been designed to be a portable and simple to use system to manage hemodialysis (HD) treatments.
Notably, AK 98 provides encrypted, two-way connectivity that allows the system to take out prescriptions directly from the electronic medical record (EMR) for streamlined workflow and data handling.
It is worth mentioning that AK 98 is presently utilized in more than 90 countries worldwide and will be available in the United States in the upcoming weeks.
This clearance is likely to boost Baxter’s Renal care segment and strengthen its position in the renal care space further.
More on the News
Owing to kidney failure people having end-stage renal disease have harmful toxins in their blood. With the help of HD therapy, blood is passed through a dialyzer, which acts as the artificial kidney to filter toxins from the blood.
AK 98 is a proven dialysis platform that leverages Baxter’s well-established position as a pioneer and delivering pathbreaking advancements in the HD space. Baxter developed the new version of its AK 98 system to aid dialysis providers in reducing the operational challenges stemming from supervising multiple hemodialysis sessions per machine per day.
Alongside Theranova, the company’s latest innovations lend support to HD that offer its customers with choices for therapy and treatment modality.
Per a report by Allied Market Research, the global hemodialysis market was worth $71.50 billion in 2017 and is projected to reach 99.75 billion by 2025 at a CAGR of 4.2% during the forecast period (2018-2025). Growing incidence of hypertension and diabetes, rise in number of end stage renal disorder patients and shortage in availability of kidney transplants will drive this market’s growth.
In December 2020, Baxter collaborated with AdventHealth Tampa to develop customized hemostasis strategies that can aid in the latter’s clinical, operational and financial goals. This has been made possible with the help of Baxter’s Vital Edge program.
In November 2020, Baxter attained FDA approval for the Homechoice Claria automated peritoneal dialysis (APD) system with Sharesource connectivity platform. It is worth mentioning here that the clearance comes on the heels of the recent finalization of the End-Stage Renal Disease (ESRD) Treatment Choices (ETC) payment model, the goal of which is to drastically increase the number of new patients with kidney failure who receive home dialysis and/or organ transplants.
Shares of this Zacks Rank #3 (Hold) company have lost 1.9% on a year-to-date basis, against the industry’s growth of 4.4%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Hologic, Inc. HOLX, IDEXX Laboratories, Inc. IDXX and Abbott Laboratories ABT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic’s long-term earnings growth rate is estimated at 15.4%.
IDEXX’s long-term earnings growth rate is estimated at 15.8%.
Abbott’s long-term earnings growth rate is estimated at 14.1%.
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