NxStage launches faster, easier dialyzer for in-center market

NxStage Medical ($NXTM) is primarily focused on the at-home dialysis market, but its newest product is devoted to making dialysis treatment in centers easier and faster for providers. It has launched the Streamline Express dialyzer that includes a preattached tubing set expected to reduce machine setup time and potential sites for contamination.

Matthew Towse

The company has about $80 million in annual revenues from the in-center dialysis market, NxStage CFO and SVP Matthew Towse said at the Stephens Fall Investment Conference on Nov. 11.

He described the in-center market as "lower margin" but with "solid margin cash flow and it provides scale for the business." NxStage's in-center products are through its acquisition seven years ago of Medisystems.

NxStage has also expanded into the dialysis service business, opening its first clinic in St. Louis, MO. In July 2013, which was certified by CMS in October. It expects to have about a dozen clinics open by the end of this year, with a few more opening next year.

The pressure pod in Streamline eliminates air-blood contact when measuring arterial and venous pressures (screenshot).--Courtesy of NxStage

The real bread and butter for NxStage is its home dialyzer business, which it expects to bring in about $150 million this year. The company makes the case that more frequent, home dialysis improves patient outcomes versus the typical thrice weekly dialysis that most patients get at clinics.

It recently released data presented at the American Society of Nephrology's Kidney Week conference on Nov. 11 that showed that more frequent dialysis results in improved patient outcomes. In a matched cohort study, home hemodialysis patients had a 16% lower risk of death, 8% decreased risk of hospitalization and a 38% reduced risk of therapy attrition than standard, peritoneal dialysis patients.

"This study provides evidence that HHD (home hemodialysis) is not only a viable alternative to PD (peritoneal dialysis), but may be a better alternative for some patients electing to perform home dialysis," Eric Weinhandl, an epidemiologist at the Chronic Disease Research Group, said in a statement. "Moreover, the study challenges the commonly held conception that therapy attrition is higher with HHD than with PD."

Investors are on board with NxStage, having driven it up 73% this year to a market cap in excess of $1 billion.

- here is the Streamline Express release and the study release

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