Three Medical Device Stocks You Need to Know
Medtronic, Inc. (MDT), Covidien PLC (COV), and St. Jude Medical, Inc. (STJ) may be some of the most popular medical device stocks in the market, but smaller players like InfuSystem Holdings, Inc. (INHI), NxStage Medical, Inc. (NXTM), and Rockwell Medical Technologies, Inc. (RMTI) also represent compelling values in the sector.
InfuSystem Holdings, Inc. [[INHI.OB]] distributes and services ambulatory infusion pumps used by oncologists in the U.S. for chemotherapy. Recently, the company announced survey results showing that 94% of its customers indicated they are “Very Likely” or “Somewhat Likely” to recommend InfuSystem to a colleague, which demonstrates the value of its services.
InfuSystem has a growing customer network of more than 1,300 oncology practices. The company helps these practices realize additional revenues, while providing patients with value-added services by providing end-to-end infusion pump installation, maintenance and billing services. Combined, this integrated strategy could lead to extraordinary growth for InfuSystem.
NxStage Medical Inc. [[NXTM]] manufactures and markets systems for the treatment of kidney failure, fluid overload and related blood treatment and procedures. Recently, the company reported a 27% jump in sales, which helped to narrow its losses by more than 30 percent for the quarter. The company also beat its own guidance by a wide margin as some of its sales were realized early.
Last month, NxStage Medical announced the latest interim results from its ongoing FREEDOM study. The FREEDOM analysis shows a significant reduction in the need for anti-hypertensive medications experienced by patients performing daily home hemodialysis (DHD) therapy with the NxStage System One, which was maintained over 12 months.
Rockwell Medical Technologies, Inc. [[RMTI]] manufactures, sells and distributes hemodialysis concentrate solutions and dialysis kits. Earlier this week, the company reported its third quarter results, which included a 276% increase in gross profits. The company also rebranded itself with a new name and web site, while listing in the Russell 2000, 3000 and global indices.
The company also announced earlier this month that it presented new in vitro data at the American Society of Nephrology (ASN) annual meeting in San Diego, CA on its lead drug candidate Soluble Ferric Pyrophosphate (SFP). Results showed that all available iron present in SFP was delivered to both iron-binding sites on human apo-transferrin, rapidly and completely.
With the nationwide focus on the healthcare industry and consolidation expected among smaller players, smaller medical device makers like these may be worth a second look for investors looking to build a diversified portfolio.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com