Haemonetics Introduces Upgraded NextGen DMS 4 Software

Haemonetics Corporation (NYSE:HAE) , a major global provider of blood and plasma supplies and services, recently unveiled a major upgrade to NextGen DMS (Donor Management System). The NextGen DMS is an advanced set of software that has been developed to enhance plasma collection center operations.

Heamonetics has been performing well in recent times, supported by its strong fundamentals and progress in strategic executions. In this regard, we note that the company’s revenues and earnings have improved at a five-year CAGR of 5.7% and 1.9%, respectively. In fact, the company recently reported impressive results for the second quarter of fiscal 2017, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

For the majority of the last six months, Haemonetics has traded higher than the Zacks categorized Medical Products Industry. Per the latest share price movement, the stock has gained 34.3%, whereas the broader industry has declined 9.5%. Additionally, the company’s estimates for the full year reflect a favorable trend. The company has seen six upward revisions with no downward revision in the last couple of months. Over the same period, current-year estimates have increased by 5 cents from $1.44 to $1.49.

Coming back to the product details, NextGen is Heamonetics’plasma management software solution, which is designed to help plasma collectors streamline their operations, increase efficiency, and maintain compliance requirements. The product will be included under the company’s Plasma franchise. The launch of NextGen DMS 4 enhances core features and introduces innovations such as reducing the cost per liter of plasma collected, enhancing quality and regulatory compliance and leveraging data to analyze and improve plasma center operations.

Of late, management has been declaring that its NextGen plasma collection software is generating strong customer interest. The release of NextGen DMS 4 will allow automated donor address verification, paperless intake and annual medical assessment. It will also extend capabilities of the donor floor mobile application to streamline phlebotomy documentation. This apart, new quality checklists used by staff at key processing steps will enable collection centers to quickly and consistently follow their standard operating procedures.

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Per a recent MarketsandMarkets analysis, the global plasma fractionation (collection) market growth is expected to be worth $26.07 billion with a CAGR of 6.7% during 2016–2021. The rise of this market is driven by an increase in life threatening diseases around the globe. Therefore, Haemonetics is constantly introducing new product lines and solutions for plasma procurement to carve out a niche in this growing market.

In the recently concluded quarter, Haemonetics recorded 11.3% year-over-year increase in revenues to $103.5 million in its Plasma business franchise. The company observed growth across all of geographic regions, with North America Plasma disposables revenues accounting for 14% growth in particular. Moreover, 6% growth came from its saline plasma collection sets. We believe that NextGen DMS 4 is an important achievement on Haemonetics’ path to bolster its strength and would help it reap benefits in the near future.

Zacks Rank & Key Picks

Haemonetics carries a Zacks Rank #2 (Buy). Other well-ranked medical stocks are NxStage Medical Inc. (NASDAQ:NXTM) , Baxter International Inc. (NYSE:BAX) and Bovie Medical Corporation (NYSE:BVX) . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy), while Bovie Medical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NxStage Medical surged 33.1% over the last one year compared with the S&P 500’s 9.5% over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.

Baxter International rallied 18.2% over one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.

Bovie Medical recorded a 119.3% gain in the past one year, way better than the S&P 500’s 5.9%. The company has a trailing four-quarter positive average earnings surprise of 28.7%.

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