Profile: NxStage Medical Inc (NXTM.O)
26 Jun 2017
NxStage Medical, Inc., incorporated on October 20, 1998, is a medical technology company. The Company develops, manufactures and markets products and services for patients suffering from chronic or acute kidney failure. The Company operates through three segments: System One, In-Center and Services. The Company sells its products in and provides its services in three markets: home, critical care and in-center. Its other business activities include manufacturing of dialyzers for sale to Asahi Kasei Kuraray Medical Co. (Asahi). The Company's product offerings include Home Dialysis, Next-Generation Hemodialysis System, Critical Care, Next-Generation Critical Care System, In-Center and NxStage Kidney Care.
The Company's home product offerings target the home hemodialysis market. The NxStage System One is a small, portable, hemodialysis system that is used to perform treatments during the day or at night, while sleeping. In addition to its machine, the Company provides patients with consumables and services, which are used for each treatment with the System One, including The NxStage Cartridge, PureFlow SL and Premixed Dialysate and Nx2me Connected Health. The NxStage Cartridge is a disposable, integrated treatment cartridge that loads into the System One. The cartridge incorporates a volumetric fluid management system and includes a pre-attached dialyzer. Its PureFlow SL accessory prepares on-site premixed dialysate fluid in batches before treatment in the patient's home using ordinary tap water and dialysate concentrate. The volume of fluids used varies with treatment options, prescription and setting. To accommodate patient travel with the System One or in other circumstances in which the PureFlow SL is not available, it also supplies premixed dialysate in sterile five liter bags.
The Company's Nx2me Connected Health platform leverages cloud-based computing and wireless communications by using an application it has developed for the iPad. The Nx2me Connected Health application collects System One cycler data, as well as patient information, such as blood pressure and weight. Patients can review, confirm, and transmit this data to their dialysis centers after each treatment and dialysis center staff can access the transmitted data with their own clinician portal. The System One also delivers a range of renal replacement therapies within the critical care market. The System One sold to hospitals for critical care is based on the same technology platform used in the home market but offers a range of therapies, including therapeutic plasma exchange. The Company configures its critical care system with a touch screen display that provides real-time treatment information, as well as troubleshooting capabilities for hospital staff and an ergonomic mobile stand for portability. It also supplies related disposable cartridges and treatment fluids necessary to perform dialysis treatment in the critical care market.
The Company sells extracorporeal disposable products under its Medisystems brand that are primarily used for in-center hemodialysis treatments for end-stage renal disease (ESRD) patients. These products include hemodialysis blood tubing sets, arteriovenous (AV) fistula needles, apheresis needles, safety accessories and access management disposables. Its blood tubing sets feature an airless design intended to enable providers to optimize dose delivery, and includes its LockSite needleless access sites. In addition, its Streamline Express dialyzer features a pre-attached blood tubing set. It also offers ButtonHole needles for hemodialysis therapies, which are used by patients that employ the constant-site technique, whereby a fistula needle is inserted in the same place each treatment. It operates various NxStage Kidney Care dialysis centers, independently and in some instances as joint ventures, that treat ESRD patients directly. At NxStage Kidney Care, it offers a range of treatment options, including home hemodialysis, peritoneal dialysis and in-center hemodialysis.
The Company's System One segment includes revenues from the sale and rental of the System One and PureFlow SL dialysate preparation equipment and the sale of disposable products in the home and critical care markets. The Company markets and sells the System One to dialysis clinics in the United States and other markets, which in turn provide the System One to their ESRD patients for chronic home hemodialysis treatment. It markets the System One directly to hospitals for treatment of acute kidney failure and fluid overload in the United States and other geographies. Its customers in the critical care market use the System One to perform prolonged or continuous renal replacement therapy for their acute kidney failure or fluid overload patients. The System One's continuous volumetric balancing offers an effluent drainage capacity. It also uses a disposable, integrated treatment cartridge for maintenance and disinfection requirements, and pre-mixed dialysate to free it from cumbersome water processing systems.
The Company offers a bio-medical training program, whereby it trains bio-medical engineers on how to service and repair certain aspects of the System One in the critical care setting. It also supplies hospitals using the System One with related disposable cartridges and treatment fluids necessary to perform treatment. It sells the System One and certain other products internationally, through a combination of direct sales to dialysis clinics and hospitals in the United Kingdom and Canada, and sales through distributors in Europe and other select markets. The Company's customers in the home market provide outsourced renal dialysis services to some of its customers in critical care.
The Company's In-Center segment includes revenues from the sale of blood tubing sets and needles for hemodialysis, primarily for the treatment of ESRD patients at dialysis clinics, and needles for apheresis. The Company markets its extracorporeal disposable products under the Medisystems brand. The Company's customers are independent dialysis clinics, as well as dialysis clinics that are part of national or regional chains. Although in many instances it has direct contractual relationships with its customers, most of its sales in this segment are made through national distributors. Finished goods are shipped directly to distributor warehouses.
The Company's Services segment includes revenues from dialysis services provided to patients at its NxStage Kidney Care dialysis centers. As of February 3, 2017, the Company had 20 centers accepting patients in13 states. The Company's centers provide patients with a range of therapy options to address their clinical and lifestyle needs. For appropriate patients, such therapies may include home hemodialysis, in-center hemodialysis and peritoneal dialysis.
The Company competes with Baxter, Fresenius, Nikkiso Co. Ltd., B. Braun Medical, Inc., Nipro Medical Corporation, JMS Co. Ltd. and DaVita.
NxStage Medical Inc
350 Merrimack St
LAWRENCE MA 01843-1748