NxStage posts record-breaking Q3 results, shares gain 13%

NxStage Medical logo

NxStage Medical (NSDQ:NXTM) posted yet another record-breaking quarter, cutting losses in half and reporting strong growth in sales.

The Lawrence, Mass.-based medical device maker posted $2.6 million in net losses, or 4¢ per share, on sales of $61.2 million for the 3 months ended Sept. 30. That compared with a net loss of $5.3 million, or 10¢ per share, on sales of $55.9 million during the same period last year.

That represents a 9.5% increase in sales, driven by the increased adoption of the NxStage System One, a device designed for home hemodialysis, NxStage said. The company’s EPS also beat Wall Street’s consensus estimates by 3¢.

Video: Changing renal care with NxStage Medical’s Jeff Burbank | Disruptors

“Home growth remains strong,” founder & CEO Jeffrey Burbank said in prepared remarks. “We continue to deliver double digit growth because we’re doing the right thing for patients. We remain committed to increasing adoption of home, more frequent dialysis, and see multiple catalysts for growth including; increased patient demand, our robust product portfolio and our centers of excellence strategy. With continued execution, we believe we can achieve over 14% annual growth in the Home for 2012.”

NxStage increased its home sales in the 3rd quarter by 17% to a record $31.9 million, according to the press release. Those gains didn’t come without a fight. NxStage has been battling the Centers for Medicare & Medicaid Services on proposed rules for home hemodialysis treatment, calling for more support for HHD therapy, especially in terms of training.

CMS in July issued an updated rule for reimbursement of HHD treatment that wasn’t much of an update at all. CMS maintained the reimbursement status quo, dashing NxStage Medical’s hopes of a more favorable physician payment environment – as well as some investors’ hopes of a near-term upside for NxStage Medical.

The CMS rule maintained reimbursement rates for at-home hemodialysis, which was already 20% lower than offered for in-clinic dialysis.

NXTM opened today at $10.64 and were trading at $11.99 as of 2:30 p.m., up 13%.

RSS From Medical Design & Outsourcing

  • Rotary drum coating technology conquers the market
    More and more customers are choosing the rotary drum technology for coating their mass-produced small plastic and rubber components. Within just a few years the sales of the Walther Trowal Rotamat coating systems have increased several fold. At the DKT/IRC 2015 the company is introducing its redesigned Rotamat R80, which compared to its predecessor model […]
  • Glebar focuses on Arthroscopic Shaver market
    A new arthroscopic shaver application, developed by Glebar Company for its advanced GT-610 CNC centerless grinder, is now delivering the most precise inner and outer tubes for use by orthopedic surgeons.The first two systems equipped with the innovative application have been sold to a major manufacturer of arthroscopic shavers.  The system will be on display […]
  • Read your ELISA plates from anywhere
    Now you can read your ELISA plate with an iOS or Android tablet or cell phone. The Enzo ELISA Plate Reader app is provided by Enzo Life Sciences as a tool to enable the use of colorimetric plate based assays in a wider variety of environmental settings. The plate reader application can provide quantitative results […]