CHF Solutions CHFS announced that Tampa, FL-based James A. Haley Veterans’ Hospital and Clinics (JAHVH) received the Institutional Review Board’s nod to start an outpatient study, using the Aquadex FlexFlow system (ultrafiltration therapy) to help manage fluid overload in patients suffering from heart failure.
This came after CHF Solutions gained a blanket purchase agreement in 2018 for up to $6.5 million from the United States Department of Veterans Affairs to supply Aquadex FlexFlow consoles and blood circuit sets to the James A. Haley Department of Veterans Affairs Medical Center in Tampa (Tampa VAMC). The agreement allowed the company to supply ultrafiltration therapy to VAMC. The contract was signed for five years.
The company claims that it is the first study to be conducted exclusively through the United States Veterans Administration. With the approval, CHF Solutions plans to consolidate position in the global ultrafiltration therapy market.
Few Words About Aquadex FlexFlow System
The Aquadex FlexFlow system is a method of removing surplus fluid in patients suffering from fluid overload. Per the company, it is a clinically proven treatment, which is safe and effective.
The system is applicable for temporary (up to eight hours) as well as extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload.
Significance of the Approval
Management of JAHVH is upbeat about the nod as it will allow it to provide better care to Veterans suffering from fluid overload, using ultrafiltration therapy in an outpatient setting.
Per the current treatment options available, patients suffering from heart failure, with fluid overload, are re-admitted into the hospital, which places a heavy economic burden on the healthcare system. With the improved treatment option being made available, it is expected to improve the quality of life while reducing costs.
Per a report by MarketsAndMarkets, the global pharmaceutical membrane filtration market (of which ultrafiltration therapy comprises a significant part) is projected to reach $6.20 billion by 2021 from $3.55 billion in 2016, seeing a CAGR of 11.8%. The key factors driving the market are growth in the biopharmaceutical industry and speedy development in generics production.
Per a report by US Cardiology Review, in the United States alone, 90% of a million annual hospitalizations for heart failure are due to volume overload. Given the huge potential, the approval has come at just the right time.
Of late, the company has made certain developments in its cardiovascular care.
It has launched the ultrafiltration therapy, using the Aquadex FlexFlow system, in several healthcare institutions like Delaware-based Beebe Healthcare (in May), Oklahoma-based Heart Hospital at Saint Francis (in April) and Oklahoma Heart Institute (in April).
CHF Solutions signed a distribution agreement with Bragenix, LTDA (a Brazil-based company) in February 2019 to expand its reach in the South America market.
The company’s shares have dipped 64.6% in the past year compared with the industry’s decline of 2.9%. However, the S&P 500 index rose 1.7% during the same period.
Zacks Rank & Key Picks
Currently, CHF Solutions carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Capricor Therapeutics, Inc CAPR, GW Pharmaceuticals PLC GWPH and Stryker Corporation SYK.
Capricor, presently carrying a Zacks Rank #2 (Buy), has projected third-quarter 2019 earnings growth rate at 28.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GW Pharmaceuticals estimates third-quarter earnings growth rate to be 70.2%. It currently carries a Zacks Rank #2.
Stryker, with a Zacks Rank #2 at present, has projected third-quarter earnings growth rate of 12.4%.
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