Why Nuwellis Shares Are Trading Higher Today

Nuwellis, Inc. NUWE shares are trading high after the company entered a supply and collaboration pact with DaVita Inc. DVA.

The companies will pilot Aquadex ultrafiltration therapy to treat adult patients with congestive heart failure and related conditions within select U.S. markets. 

The Aquadex SmartFlow system delivers clinically proven therapy for removing excess fluid from patients suffering from hypervolemia (fluid overload).

Pairing the Aquadex system with DaVita's care team, Nuwellis will expand access to ultrafiltration therapy to millions of heart failure patients in the U.S. suffering from fluid overload and reduce related healthcare costs.

"We believe the pilot with DaVita can support the role ultrafiltration can play in heart failure patient management and could enable accelerated commercial expansion of this therapy," said John Jefferies, MD, Chief Medical Officer of Nuwellis. 

The pilot program is expected to launch by the end of the third quarter of 2023 and extend through May 31, 2024.

In conjunction with the agreement, Nuwellis issued DaVita a warrant for approximately 1.3 million shares of Nuwellis common stock. 

The warrant is subject to certain vesting milestones and a blocker that prevents the warrant from being exercised for a number of shares representing greater than 19.9% ownership in Nuwellis.

Price Action: NUWE shares are trading higher by 5.10% to $3.08 on the last check Tuesday.