DaVita Task: Take NxStage Stake

NxStage (NXTM) surged 35% after signing a home dialysis partnership with DaVita (DVA).

DaVita said it bought $20 million in NxStage stock, giving it a 7% stake.

DaVita purchased outright all its NxStage System One equipment currently in use for $5 million, and will purchase the majority of its future home hemodialysis equipment requirements. Additionally, the companies have agreed to collaborate on a variety of initiatives to expand the home hemodialysis market such as public awareness, public policy and additional research efforts.

"We are excited about the opportunity this partnership offers our patients," stated Kent Thiry, CEO of DaVita. "Providing our patients with a variety of dialysis options, either in-center or at home, is consistent with our mission to be the provider of choice for dialysis patients."

"We are pleased to expand our relationship with DaVita," said Jeffrey H. Burbank, CEO of NxStage Medical. "With this partnership, we are furthering our company's strategy of working with a select group of passionate providers in each geography in order to increase patient access to home therapy."

Late Wednesday, NxStage rose $3 to $11.50.