Baxter International (NYSE:BAX) recently announced FDA clearance of Q-NRG+, a metabolic monitoring device utilizing indirect calorimetry (IC) technology. The product is expected to be available in the United States starting March.
For investors’ notice, Baxter had collaborated with Italy-based COSMED last August. The aim was to commercialize Q-NRG+, one of COSMED’s flagship products.
More on Q-NRG+
Q-NRG+ is a metabolic monitoring device utilizing IC technology. These readings can help provide information on prescription and administration of nutrition therapy. The device can be used to test both adult and pediatric patients.
Q-NRG+ is currently available in select European countries, Canada and Australia. Post the FDA clearance, Baxter has rights to introduce Q-NRG+ in at least 18 markets around the globe, with room for further expansion.
This is expected to boost Baxter’s Clinical Nutrition segment. The company provides one of the broadest parenteral nutrition portfolios globally, which includes premix IV solutions, vitamins and lipids as well as pharmacy workflow management.
In fact, Baxter is trying to utilize opportunities in the United States and abroad to boost its Clinical Nutrition arm. Being one of the market leaders in parenteral nutrition, Baxter expects this segment to have driven its 2019 performance.
Market Prospects
Going by a report of Absolute Market Insights, the global clinical nutrition market is expected to reach a worth of $98.52 billion, at a CAGR of 7.6%.
The need to provide continuous care and a surge in the aging populace are the factors driving growth.
Hence, the latest development has been a well-timed one for Baxter.
Past Performance
Over the past year, shares of this Zacks Rank #3 (Hold) company have rallied 26.2%, outperforming the industry’s 11% rise.
Key Picks
Some better-ranked stocks in the broader medical space are AmerisourceBergen Corporation (NYSE:ABC) , Cardinal Health (NYSE:CAH) and DexCom, Inc. (NASDAQ:DXCM) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen’s long-term earnings are expected to grow 7.4%.
Cardinal Health’s long-term earnings are projected to rise 6.2%.
DexCom’s fourth-quarter earnings are estimated to climb 38.9%.
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Baxter International Inc. (BAX): Free Stock Analysis Report
Cardinal Health, Inc. (CAH): Free Stock Analysis Report
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
DexCom, Inc. (DXCM): Free Stock Analysis Report
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