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Avanos Medical Buys Nexus Medical to Bolster Critical Care Portfolio

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Key Takeaways

  • {\"0\":\"AVNS acquired Nexus Medical to expand its Specialty Nutrition Systems business.\",\"1\":\"The deal adds TKO connector to AVNS\' portfolio, reducing occlusions and infection risks in IV therapy.\",\"2\":\"The acquisition is cash-funded and immediately accretive to AVNS revenues and EPS.\"}

Avanos Medical, Inc. (AVNS - Free Report) recently announced that it has acquired Nexus Medical, LLC, a privately held device maker based in Lenexa, KS, to expand its footprint in critical care for nutrition and medication delivery. The move strengthens Avanos’ Specialty Nutrition Systems business and underscores its strategy to advance safe and reliable therapy delivery in high-acuity settings.

With this acquisition, Avanos has added Nexus Medical’s proprietary TKO anti-reflux needleless connector technology, a product designed to minimize blood reflux during intravenous nutrition and medication delivery. The technology, which utilizes a patented tri-seal silicone valve, addresses a key clinical challenge by reducing catheter occlusions, therapy delays, and the risk of infection. Its adoption has been particularly strong in Neonatal and Pediatric Intensive Care Units (NICUs and PICUs), where consistency and safety in therapy delivery are paramount.

Avanos financed the acquisition with existing cash reserves. The transaction is expected to be immediately accretive to both revenue growth and earnings per share, providing a near-term boost to the company’s financial profile.

Likely Trend of AVNS Stock Following the News

In the year-to-date period, Avanos’ shares have plunged 25.5% compared with an 11% decline in the industry. The S&P 500 composite has increased 13.4% in the same time frame.

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The acquisition of Nexus Medical is expected to generate a favorable response from investors, given its immediate accretive impact on revenues and earnings. The deal strengthens Avanos’ positioning in critical care, a market segment with stable demand and high clinical importance, which could enhance investor confidence in the company’s growth trajectory. Shares of AVNS may see near-term upside as markets price in improved profitability and a more competitive product portfolio, though sustained momentum will depend on successful integration and execution in the Specialty Nutrition Systems segment.

Acqusition Boosts Neonatal and Pediatric Care

The addition of Nexus Medical’s product line reinforces Avanos’ emphasis on innovation tailored to neonatal and pediatric care, a niche segment where specialized devices can materially impact outcomes. With hospitals increasingly prioritizing patient safety protocols and infection prevention, the TKO connector aligns with market demand for trusted solutions that help clinicians streamline workflows while minimizing risk.

By integrating Nexus Medical’s proven technology, Avanos strengthens its competitive standing against larger medtech peers and deepens its presence in the high-value neonatal and pediatric care markets. The acquisition not only diversifies Avanos’ offerings but also supports its broader strategy of investing in innovations that meet the evolving needs of clinicians in acute care environments. This also positions Avanos to capture additional market share and broaden its critical care solutions portfolio.

AVNS’ Zacks Rank & Key Picks

Currently, AVNS carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are West Pharmaceutical Services, Inc. (WST - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Boston Scientific (BSX - Free Report) .

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Medpace Holdings, currently sporting a Zacks Rank of 1, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.11%.

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