With Medicare offering financial incentives in the end-stage renal disease payment bundle to expand home programs, peritoneal dialysis has become a favored choice because it is simpler and cheaper than home hemodialysis. NxStage Medical, which has helped to rejuvenate interest in home hemodialysis, is now throwing its hat into the ring, saying it will develop new products for the peritoneal dialysis market in 2014.
The company will compete with PD manufacturing giants Baxter Healthcare and Fresenius Medical Care, which are major suppliers of equipment in the U.S. and abroad.
NxStage will also dramatically increase the number of its new dialysis care centers––possibly reaching as high as 15 by the end of the year from its current two in Missouri and Illinois.
"Similar to this past year, 2014 will be focused on growth and investment,” said NxStage CEO Jeff Burbank in a recent press release on fourth quarter sales results. “We remain confident in the strength of our near-term initiatives to achieve our target of 15% annual growth in the home (dialysis market) and are continuing to invest significantly in long-term initiatives to increase patient access to our therapies and accelerate adoption. These initiatives include another robust innovation pipeline with peritoneal dialysis and next generation products, and expanded market development activities with a cadence of one to three additional NxStage Kidney Care centers each quarter in 2014, leading to a total of approximately 10 to 15 centers by the end of this year."
Similar to traditional dialysis clinics, NxStage’s Kidney Care centers offer all modality options, but offer varied in-center hemodialysis scheduling, including flexible treatment hours and short-term respite care for home hemodialysis patients.
Fourth quarter revenue
NxStage reported revenue for the fourth quarter of 2013 increased 7% to $69.4 million, compared to $65 million for the fourth quarter of 2012. Revenue for the full year increased 9% to $263.4 million, compared to $242.1 million in 2012. Revenues in the home dialysis market grew 8% to $132.9 million for the full-year 2013, compared to $123.6 million for 2012. Home revenue increased to $35.1 million in the fourth quarter of 2013, compared with revenue of $31.4 million in the fourth quarter of 2012, representing a 12% increase.
Revenues in the critical care market grew 11% in 2013 to $43.8 million, compared with revenue of $39.5 million for the full-year 2012. Critical care revenue increased to $11.6 million in the fourth quarter of 2013, compared with revenue of $11.3 million in the fourth quarter of 2012, representing a 3% increase.
The company's in-center business, Medisystems, delivered 6% annual growth with revenue increasing to $81.9 million for the full-year 2013, compared with revenue of $76.9 million for the full-year 2012. Fourth quarter 2013 revenue was $20.6 million, compared with $21.5 million in the fourth quarter of 2012.