What is happening with Nxstage?

Rumours circulating out here in Australia is that Nxstage is having financial problems and is going down the tube. Is that just a nasty rumour? I hope so as a few of us have been pinning our hopes on it eventually finding its way downunder):
Anyone prepared to comment?

I’m not too sure beachy.

I think the experience is that starting a medical equipment manufacturing firm is hard. Starting a firm using a novel process is even harder. I’m not sure we’re in a position to evaluate the firm’s business model.

Fair enough Bill. We live in hope.
Cheers

First time I hear about this rumor, but could be true is some sense and I can tell you this, Nxstage is doing all it can to stay afloat, no matter what. They have many many clients that support their products so it seems they have the resources to stay afloat. Some difficult decisions for them included moving manufavturing to Mexico and with the buyout of Medisystems, hmm…sure alot is going on over there, so I think they’re here to stay. Who knows maybe another competitor may step into the spot…

[quote=beachy;13456]Rumours circulating out here in Australia is that Nxstage is having financial problems and is going down the tube. Is that just a nasty rumour? I hope so as a few of us have been pinning our hopes on it eventually finding its way downunder):
Anyone prepared to comment?[/quote]

Well it certainly is a recommended buy stock. But if they can keep the manufacturing costs in-line and improve QA/QC the are looking at exponential growth in the next few years. Of course bad to see dialysis a growth industry but good for those of us who want reliable and effective dialysis. Keep your fingers crossed. Erich

Hi y’all,

Here’s a recent press release from NxStage that suggests they’re doing pretty well:

NxStage Medical Reports Second Quarter 2007 Results

Company Reports 25% Growth in Chronic Patients and a 33% Increase in Centers Offering the NxStage System One

LAWRENCE, Mass., Aug. 2 /PRNewswire-FirstCall/ – NxStage Medical, Inc. (Nasdaq: NXTM), the manufacturer of the NxStage System One ™ portable kidney dialysis machine, today announced its financial results for the second quarter ended June 30, 2007.

Revenues for the second quarter of 2007 were $10.0 million, compared to $4.5 million in the second quarter of 2006, an increase of 121%. Revenues in the chronic home dialysis market were $6.7 million for the second quarter of 2007, compared to $2.7 million in the second quarter of 2006. Revenues in the critical care market for the second quarter of 2007 were $3.3 million, compared to $1.9 million in the second quarter of 2006. For the six months ended June 30, 2007 revenue was $18.4 million, a 132% increase over revenue of $7.9 million for the first six months of 2006.

At the end of the second quarter of 2007, NxStage was working with 265 dialysis centers to provide home hemodialysis therapy with its System One to 1,615 end-stage renal disease (ESRD) patients. This compares to 200 centers and 1,295 patients at the end of the first quarter of 2007. NxStage also continued to expand use of the PureFlow SL to a broader customer base and at the end of the second quarter 2007, PureFlow penetration reached 58% of all System One machines in the chronic market. Expanding penetration of PureFlow among existing and new customers is an important element of NxStage’s ongoing focus to improve margins.

“In the second quarter, we demonstrated solid progress in growing the market for home hemodialysis. We saw a significant increase in the number of dialysis centers adopting the NxStage System One which is a key metric for gauging demand for this new treatment modality,” said Jeffrey H. Burbank, President & CEO of NxStage Medical. “We expect our recent agreement to acquire Medisystems Corporation will help to transform NxStage into a dialysis industry leader, with the scale and capabilities to support the growth of home hemodialysis.”

NxStage reported a net loss of $12.9 million, or ($0.43) per share, for the second quarter of 2007, compared with a net loss of $10.4 million, or ($0.46) per share, for the second quarter of 2006, reflecting increased sales and marketing and distribution expenses to support the Company’s commercialization efforts. For the six months ended June 30, 2007 net loss was $24.9 million, or ($0.84) per share, compared to $19.6 million, or ($0.90) per share, for the first six months of 2006.

Cash, cash equivalents and short term investments as of June 30, 2007 were $53.0 million, compared to $70.7 million at the end of the first quarter of 2007.

Recent Highlights

In the second quarter of 2007, NxStage announced a definitive agreement to acquire Medisystems Corporation and certain affiliated entities (“Medisystems”) for 6.5 million shares of NxStage common stock.

Headquartered in Seattle, Washington, Medisystems is a privately owned, developer, manufacturer and distributor of medical devices for use in dialysis and blood related treatments. Medisystems is a U.S. market leader in hemodialysis blood tubing sets, A.V. fistula needles, and other ancillary hemodialysis disposables. For 2006, Medisystems recorded $62.6 million in revenues, approximately $4.5 million of which was from Medisystems’ sales to NxStage.

The acquisition will provide NxStage with increased commercial, operational and financial scale, along with additional depth in technology, manufacturing and leadership which is expected to complement NxStage’s ability to execute, positioning the Company to maintain its leadership in the developing home hemodialysis market. The acquisition is expected to be immediately accretive and to accelerate NxStage’s timeline to profitability. It is anticipated that the transaction will close in the fourth quarter of 2007.

Guidance

For the third quarter of 2007, NxStage expects revenue to be in the range of $11.0 million to $11.6 million. The Company expects a net loss in the range of ($13.0) million to ($13.6) million or ($0.43) to ($0.45) per share, including estimated non-cash stock-based stock compensation charges of $750,000 to $850,000. The Company expects to add approximately 320 to 400 additional net patients and 30 to 50 new centers offering therapy with the NxStage System One during the third quarter. This guidance does not include any impact from the Medisystems acquisition, in the event it closes in the third quarter.

For the full year 2007, the Company expects to be in the range of $42.0 million to $45.0 million, excluding the Medisystems acquisition, and to end the year with 2,200 to 2,400 patients at approximately 320 to 340 centers offering therapy with the NxStage System One.

Conference Call

NxStage will host a conference call at 9:00 a.m. Eastern Time on August 2, 2007 to discuss its second quarter financial results. To listen to the conference call, please dial 866-510-0708 for domestic callers and 617-597-5377 for international callers. The passcode is 79823967. A replay of the conference call will be available beginning Friday August 3, 2007 at 8:00 a.m. Eastern Time through August 17, 2007 by dialing 888-286-8010 (domestic) and 617-801-6888 (international), passcode 54290676. An online archive of the conference call will also be available by accessing the Investor Information section of the company’s website at http://www.nxstage.com .

About NxStage Medical

NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative systems for the treatment of end-stage renal disease, or ESRD, and acute kidney failure. For more information on NxStage and its products, please visit the Company’s website at http://www.nxstage.com .

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the anticipated demand for home and/or daily hemodialysis products, the anticipated market acceptance and demand for NxStage’s products, anticipated increases in the availability of, and market and patient awareness regarding, home hemodialysis, anticipated benefits of the Medisystems acquisition and expectations regarding the timing for closing the acquisition, anticipated reductions in cost of goods sold, anticipated margin improvements, anticipated patient numbers, expected PureFlow SL adoption and expectations as to future operating results. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements, including market acceptance and demand for NxStage’s System One, growth in home and/or daily hemodialysis, and certain other factors that may affect future operating results and which are detailed in NxStage’s filings with the Securities and Exchange Commission, including the Quarterly Report on Form 10-Q for the quarter ended March 31, 2007.

In addition, the statements in this press release represent NxStage’s expectations and beliefs as of the date of this press release. NxStage anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while NxStage may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing NxStage’s expectations or beliefs as of any date subsequent to the date of this press release.