NxStage signs deals with WellBound, Renal Advantage

(Press Release)

LAWRENCE, Mass.—A week after reaching a multi-year agreement with DaVita, NxStage Medical said today that it has also signed multi-year deals with WellBound and Renal Advantage.

DaVita and NxStage announced February 7 that they entered into a multi-year agreement to expand the home dialysis market in which DaVita has purchased $20 million in NxStage stock as well as $5 million in equipment.

Under the deal, NxStage is offering the sale of its System One portable dialysis machine to WellBound and Renal Advantage. Like DaVita, Renal Advantage has agreed to purchase the majority of the System One machines it currently uses, NxStage said on a conference call today. However, no specific numbers or financial details were disclosed. In addition, NxStage said WellBound is still determining what works best for them.

At the end of 2006, NxStage said it had 1,022 chronic patients using the System One machine in 174 dialysis centers, compared to 292 patients using the machine in 70 clinics at the end of 2005.

Revenues for NxStage also increased to $20.8 million in 2006 compared to $6 million in 2005. The company’s net loss for 2006 was $39.6 million, compared to $24.5 million in 2005. NxStage said the increased net loss was due to increased spending in sales and marketing from the growing patient base using the System One machine.

WellBound was founded in 2003 and is affiliated with dialysis provider Satellite Healthcare. WellBound manages clinics that focus on wellness and education with more frequent dialysis.

Renal Advantage, the fourth largest provider of dialysis services in the United States, cares for approximately 7,000 patients in more than 70 freestanding dialysis centers in 10 states. The company acquired the centers as a result of DaVita Inc.’s acquisition of Gambro Healthcare US.