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Baxter Shares May Gain on the Launch of Its Latest Vest APX System
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Baxter International, Inc. (BAX - Free Report) announced the launch of its next-generation airway clearance system, The Vest Advanced Pulmonary Experience (APX) System, at the North American Cystic Fibrosis Conference. Baxter received FDA 510(k) clearance for The Vest APX System in March 2024.
The Vest APX System supports daily therapy for adults and children with certain chronic lung conditions and retained secretions. The system features the same trusted airflow technology as the previous version, with enhanced comfort and additional patient-centered features driven by clinician and patient input.
Likely Trend of BAX Stock Following the News
Following the announcement, shares of the company moved 0.8% north and closed at $38.91 on Friday.
Baxter’s growing respiratory health business buoys optimism about the stock. Per a report by Allied Market Research, the global respiratory care devices market was valued at $22.9 billion in 2023 and is anticipated to witness a CAGR of 7.6% from 2024 to 2030. Accordingly, we expect the BAX stock to gain investors’ optimism around this latest product launch, which is likely to provide a boost to the company’s business and generate additional revenues.
For the past six months, BAX shares have lost 10.7% against the industry’s rise of 7.5%. The S&P 500 increased 9.6% in the same time frame.
Meanwhile, BAX currently has a market capitalization of $19.85 billion. It has an earnings yield of 7.61%, much higher than the industry’s yield of 0.95%.
Image Source: Zacks Investment Research
More on BAX’s Latest Launch
Patients suffering from long-term lung diseases like bronchiectasis and cystic fibrosis may have mucus obstructing their narrow airways. Bacteria can get trapped in mucus, which can cause lung infections and inflammation. The Vest APX System uses High Frequency Chest Wall Oscillation (HFCWO) technology to help dislodge mucus from the bronchial walls and mobilize secretions and mucus from the smaller to larger airways, where it can be cleared by coughing or suctioning.
In addition to the well-established, patented technology that drives The Vest APX System, the new features of the system provide an improved overall experience for patients. The system features a streamlined, lightweight garment that keeps the abdomen free, a wicking fabric to keep patients cool and a Velcro brand closure for optimal fit.
The Vest System is user-friendly, and its intuitive navigation on a touch screen makes it easy for patients and caregivers to start therapy with one button push. The control unit is 19% smaller and 30% lighter than the previous version and comes with a carrying case.
More on Baxter’s Respiratory Health Business
Baxter entered the non-invasive respiratory health industry in December 2021 through its acquisition of Hillrom, which has long been a pioneer in airway clearance. BAX’s portfolio of respiratory health products includes airway clearance and non-invasive ventilation products that support patients with symptoms associated with chronic obstructive pulmonary disease, cystic fibrosis, bronchiectasis and other pulmonary-compromising conditions. Some of the products in BAX’s respiratory health portfolio include the Volara System and the Monarch Airway Clearance System.
The Volara System for Oscillation & Lung Expansion (OLE) Therapy combines three key OLE therapies in a single, versatile device. The system alternates cycles of Continuous Positive Expiratory Pressure and Continuous High Frequency Oscillation combined with aerosol delivery to help maximize therapy effectiveness. The Monarch Airway Clearance System provides mobile HFCWO therapy to help thin and mobilize secretions from the airways.
Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% so far this year compared with the industry's 34.8% rise.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% growth.
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Baxter Shares May Gain on the Launch of Its Latest Vest APX System
Baxter International, Inc. (BAX - Free Report) announced the launch of its next-generation airway clearance system, The Vest Advanced Pulmonary Experience (APX) System, at the North American Cystic Fibrosis Conference. Baxter received FDA 510(k) clearance for The Vest APX System in March 2024.
The Vest APX System supports daily therapy for adults and children with certain chronic lung conditions and retained secretions. The system features the same trusted airflow technology as the previous version, with enhanced comfort and additional patient-centered features driven by clinician and patient input.
Likely Trend of BAX Stock Following the News
Following the announcement, shares of the company moved 0.8% north and closed at $38.91 on Friday.
Baxter’s growing respiratory health business buoys optimism about the stock. Per a report by Allied Market Research, the global respiratory care devices market was valued at $22.9 billion in 2023 and is anticipated to witness a CAGR of 7.6% from 2024 to 2030. Accordingly, we expect the BAX stock to gain investors’ optimism around this latest product launch, which is likely to provide a boost to the company’s business and generate additional revenues.
For the past six months, BAX shares have lost 10.7% against the industry’s rise of 7.5%. The S&P 500 increased 9.6% in the same time frame.
Meanwhile, BAX currently has a market capitalization of $19.85 billion. It has an earnings yield of 7.61%, much higher than the industry’s yield of 0.95%.
Image Source: Zacks Investment Research
More on BAX’s Latest Launch
Patients suffering from long-term lung diseases like bronchiectasis and cystic fibrosis may have mucus obstructing their narrow airways. Bacteria can get trapped in mucus, which can cause lung infections and inflammation. The Vest APX System uses High Frequency Chest Wall Oscillation (HFCWO) technology to help dislodge mucus from the bronchial walls and mobilize secretions and mucus from the smaller to larger airways, where it can be cleared by coughing or suctioning.
In addition to the well-established, patented technology that drives The Vest APX System, the new features of the system provide an improved overall experience for patients. The system features a streamlined, lightweight garment that keeps the abdomen free, a wicking fabric to keep patients cool and a Velcro brand closure for optimal fit.
The Vest System is user-friendly, and its intuitive navigation on a touch screen makes it easy for patients and caregivers to start therapy with one button push. The control unit is 19% smaller and 30% lighter than the previous version and comes with a carrying case.
More on Baxter’s Respiratory Health Business
Baxter entered the non-invasive respiratory health industry in December 2021 through its acquisition of Hillrom, which has long been a pioneer in airway clearance. BAX’s portfolio of respiratory health products includes airway clearance and non-invasive ventilation products that support patients with symptoms associated with chronic obstructive pulmonary disease, cystic fibrosis, bronchiectasis and other pulmonary-compromising conditions. Some of the products in BAX’s respiratory health portfolio include the Volara System and the Monarch Airway Clearance System.
The Volara System for Oscillation & Lung Expansion (OLE) Therapy combines three key OLE therapies in a single, versatile device. The system alternates cycles of Continuous Positive Expiratory Pressure and Continuous High Frequency Oscillation combined with aerosol delivery to help maximize therapy effectiveness. The Monarch Airway Clearance System provides mobile HFCWO therapy to help thin and mobilize secretions from the airways.
BAX’s Zacks Rank & Other Stocks to Consider
BAX carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% so far this year compared with the industry's 34.8% rise.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% growth.