NxStage (R) Will Initiate Manufacturing Some System One Products In Mexico

NxStage Medical, Inc. (Nasdaq: NXTM - News), the manufacturer of the NxStage System One(TM) portable kidney dialysis machine, announced today that it will initiate manufacturing of certain of its System One products in Fresnillo, Mexico, as part of its ongoing efforts to reduce product costs and optimize operations. Beginning in May, NxStage will execute a phased relocation of the manufacture of its PureFlow SL disposables and System One cycler to a new facility provided by The Entrada Group in Fresnillo. In the future, NxStage also plans to use the facility to manufacture other System One components, including PureFlow SL hardware.

“This strategic initiative will enable NxStage to control costs and quality as we expand our manufacturing operations to support our growth and successful PureFlow SL roll-out. After a comprehensive evaluation of alternatives to increase our manufacturing capacity, we concluded that Entrada’s facilities in Mexico, with access to a highly-skilled, low cost workforce, will be a strategic advantage,” said Jeff Burbank, President and Chief Executive Officer, NxStage Medical.

The Entrada Group is a Texas-based provider of manufacturing facilities and contract services for companies seeking production capacity in Mexico. The new facility being constructed by Entrada will be designed to meet the U.S. Food and Drug Administration’s (FDA) Quality System Regulations.

The NxStage System One is the first truly portable hemodialysis system cleared for home use by the FDA. Unlike traditional dialysis equipment, the System One plugs into standard electrical outlets, requires no special infrastructure to operate and is easy to use by trained patients and their trained partners. Rather than commuting to and from a dialysis clinic three times per week for scheduled treatment sessions lasting three to four hours, patients who use the NxStage System One have the personal freedom to conduct prescribed treatments at home on their own schedule and to bring the System with them when they travel.