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Baxter SHARESOURCE Successfully Manages Home Dialysis

Zacks Equity Research

Headquartered in Deerfield, IL, Baxter International Inc. BAX, a global medical technology company, announced the successful execution of 150,000 peritoneal dialysis (PD) procedures in patients’ homes by its recently launched SHARESOURCE (cloud-based patient management system).

This marked the first ‘large-scale application of the first and only two-way, telehealth platform’ that performs home dialysis therapy. Notably, the SHARESOURCE technology has been rapidly gaining prominence among health care givers worldwide (both rural & urban).

The latest development buoys optimism, taking the global sentiments for the peritoneal dialysis market into consideration. Notably, the global hemodialysis & peritoneal dialysis market is expected to reach a worth of $93.83 billion by 2020, growing at a CAGR of 6.2% (Markets And Markets).

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Per management, SHARESOURCE has helped healthcare providers keep track of patients who have recently undergone dialysis or have missed treatments or may have potential issues that arise after each PD session. On this note, PD, a treatment for patients with chronic kidney disease, detoxifies blood and eliminates extra fluid through the peritoneal cavity.

Meanwhile, Baxter is scheduled to report third-quarter 2016 financial results on Oct 25. Estimates for the current year have been stable at $1.72 per share over the last two months. Additionally, Baxter represents an impressive one-year return of 34.35%, higher than the S&P 500’s 6.2% over the same time frame.

Coming to SHARESOURCE availability, the technology is present in Baxter’s AMIA and HOMECHOICE CLARIA automated peritoneal dialysis systems. It is also accessible in select European and Asian countries and has been recently launched in Latin America as well.

We believe Baxter is gaining prominence in the market with a series of strategic developments that include the recent launch of NUMETA G13E and the tie-up with Satellite Healthcare. However, cutthroat competition in the medical products segment and unimpressive hospital spending environment are likely to mar prospects for the company.

Zacks Rank & Key Picks

Currently, Baxter carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector are ABIOMED Inc. ABMD, AngioDynamics Inc. ANGO and Glaukos Corporation GKOS. Notably all the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

ABIOMED has a long-term expected earnings growth rate of approximately 26.7%. Notably, the stock represents an impressive one-year return of 36.7%.

AngioDynamics has a long-term expected earnings growth rate of 15.00%. The company posted a solid one-year return of 39.7%.

Glaukos Corporation recorded a stellar one-year return of almost 57.4%. Notably, the company posted a positive surprise in the past four quarters, the average being 110.9%.

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