Haemonetics stock surged Thursday after the medical-device maker disclosed an expanded rollout of its plasma collection devices, potentially opening the door to significant recurring revenue.
Shares of Haemonetics added 17% to $119.56, on pace for their highest close since hitting $116.97 in April 2021, according to Dow Jones Market Data. The stock has risen 43% this year, tracking its best annual performance since 2022.
Haemonetics disclosed in a Securities and Exchange Commission filing on Thursday that CSL Plasma plans to adopt its plasma collection equipment across all of its existing U.S. collection centers, with the rollout expected to be completed by December 2027.
The pair reached a non-exclusive agreement in August under terms that CSL Plasma was permitted to use Haemonetics' equipment and related supplies. The agreement didn't previously specify that CSL Plasma intended to transition all of its facilities to Haemonetics' products.
Haemonetics manufactures equipment and supplies used to collect and process blood and plasma, as well as other products used in hospitals. Its NexSys PCS devices are one of its flagship products, and are used by companies like CSL Plasma to collect plasma from blood donors.
The agreement could provide Haemonetics with a revenue stream, as CSL Plasma operates one of the largest plasma collection networks in the country. Not only does Haemonetics provide plasma-collection devices, it also sells the disposable products needed for each donation, potentially generating ongoing sales as CSL Plasma expands its use of the equipment.
The company isn't raising its financial outlook just yet. Haemonetics said it will maintain its fiscal 2027 guidance because the timing and financial impact of the agreement remain uncertain. It expects to provide an update on its anticipated financial impact during its November earnings call.
Haemonetics will report second-quarter results for fiscal 2027 on Nov. 5.