NxStage Medical Partners Dialyze Direct For On-Site Dialysis

NxStage Medical, Inc. (NASDAQ:NXTM) recently announced that its subsidiary NxStage Kidney Care is partnering Dialyze Direct for supporting the needs of patients who need on-site skilled-nursing facilities (SNF) for dialysis treatment in Ohio.

In an initiative to reduce transportation costs, re-hospitalization rates and provide dialysis care on site, NxStage will now leverage on its System One platform and Dialyze Direct’s unique model for treating geriatric SNF patients with end stage renal disease (ESRD).

On-site dialysis at SNF is hassle free and counters organizational and operational challenges for dialysis centers and care facilities. NxStage System One helps avoid the hassles of regular transportation for a patient to an off-site dialysis center (almost thrice a week).

Results for on-site dialysis at SNF have been significantly favorable for patients because it has witnessed reductions in both mortality and hospitalizations. Furthermore, patients with higher flexibility are eligible for rehabilitation therapy and social activities.

Notably, U.S.-based Dialyze Direct provides innovative and staff-assisted home hemodialysis services to geriatric patients in skilled nursing facilities (SNF).

Future Trends

Data from Markets And Markets reveal that the global hemodialysis and peritoneal dialysis market is expected to reach a worth of $83.89 billion by 2021, multiplying at a CAGR of 6.0%. Per management, the niche market, especially in the SNF space, has substantial opportunities to improve overall cost of care.

Furthermore, an increased rate of ESRD cases among patients enhances probabilities of NxStage outperformance in the niche space in the near term. In this regard, two major players in the hemodialysis market include DaVita Healthcare Partners, Inc. (NYSE:DVA) and Baxter International, Inc. (NYSE:BAX) .

NxStage Getting Acquired

Earlier this month, German dialysis provider Fresenius Medical Care (NYSE:FMS) signed an agreement to acquire all outstanding shares of NxStage for $30 a share. The transaction has been valued at $2 billion and is subject to close by 2018, on approval of NxStage stockholders and other customary conditions.

We note that NxStage has been gaining prominence in the market of late with products like NxStage PureFlow SL Dialysis Preparation System, Nx2me Connected Health and NxStage System One.

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