Baxter & ASPEN Launch PN Tools to Boost Clinical Nutrition

Baxter International Inc. BAX and the American Society for Parenteral and Enteral Nutrition (ASPEN) recently launched an educational video series on the appropriate use of parenteral nutrition (PN). Notably, this is part of SmartPN, a collaboration between Baxter ad ASPEN, which came into effect in 2017.

The video includes four parts, viz, The General Approach, The Role of Supplemental Parenteral Nutrition, Avoiding Overfeeding and Glucose Control Management, and Venous Catheter Selection, Care and Complication Prevention.

The latest development is likely to boost Baxter’s Clinical Nutrition business.

About SmartPN

SmartPN is a comprehensive collaboration providing healthcare professionals with educational tools on the appropriate use of PN therapy to help reduce clinical malnutrition.

For investors’ notice, PN is the intravenous administration of nourishment to those who cannot eat or absorb enough food to maintain good nutrition. PN plays a critical role in reducing malnutrition and achieving the best possible health outcomes.

Market Prospects

Going by an AHRQ (Agency for Healthcare Research and Quality) report, malnutrition occurs among 8.1% of non-maternal, non-neonatal hospitalized patients in the United States. Additionally, patients diagnosed with malnutrition have a longer length of stay, higher cost and have five times more chances of death.

Trade Market Research projects that the global clinical nutrition market will see a CAGR of 5.8% between 2018 and 2023.

Thus, the latest move has been a well-timed one for Baxter.

 

 

Clinical Nutrition in Focus

Baxter’s Clinical Nutrition solutions provide life-saving nutrition options to patients. The company offers diverse and flexible nutrition solutions to meet different PN formulation needs.

In the last reported quarter, the unit contributed 7.8% to Baxter’s net sales. The business saw strong growth internationally. In fact, management expects positive contribution from the Clinical Nutrition business in the next quarter.

Price Performance

We believe developments such as these are likely to provide cushion to the stock, which has rallied 14.8% compared with the industry’s rise of 18.6% in a year’s time. However, the current level is higher than the S&P 500 index’s 13% increase.

The stock currently has a Zacks Rank #2 (Buy).

Other Key Picks

Some other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG, Masimo Corporation MASI and Inogen, Inc. INGN.

Intuitive Surgical has an expected long-term earnings growth of 14.7%. The stock has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo’s long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.

Inogen’s long-term earnings growth rate is estimated at 24.5%. The stock carries a Zacks Rank #2.

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