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¢.
“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%.