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ALPHARETTA, Ga. - Avanos Medical, Inc. (NYSE:AVNS), currently trading at $12.22 and showing a "GOOD" overall financial health score according to InvestingPro analysis, announced Monday it has acquired Nexus Medical, LLC, a privately held medical device company based in Lenexa, Kansas, using available cash reserves.
The acquisition brings Nexus Medical’s TKO anti-reflux needleless connector technology into Avanos’ portfolio. This technology is designed for nutrition and medication delivery in high-acuity settings, particularly in Neonatal and Pediatric Intensive Care Units. The move comes as Avanos maintains a strong liquidity position with a current ratio of 2.64, indicating ample resources for strategic acquisitions.
Nexus Medical’s flagship product features a patented, pressure-activated tri-seal silicone valve that aims to minimize blood reflux during IV-based nutrition and medication delivery. Blood reflux has been identified as a contributor to catheter occlusions and other complications in medical settings.
"This acquisition is a clear extension of our strategy to deliver smarter, safer solutions across the critical care spectrum," said Dave Pacitti, Avanos chief executive officer, in the press release statement.
The company expects the acquisition to immediately boost both revenue growth and earnings per share, according to the announcement. The financial terms of the transaction were not disclosed.
Avanos Medical, headquartered in Alpharetta, Georgia, focuses on medical device solutions for patient care. The company stated that Nexus Medical’s technology complements its existing Specialty Nutrition Systems business and aligns with its focus on therapy delivery for neonatal patients.
Founded in 2001, Nexus Medical developed anti-reflux technology for needleless connectors to address complications associated with blood reflux in IV catheters. While Avanos currently shows a moderate debt level with a debt-to-equity ratio of 0.18, analysts tracked by InvestingPro expect the company to return to profitability this year, with projected earnings per share of $0.85. Get detailed acquisition analysis and 7 additional key insights about Avanos with an InvestingPro subscription.
In other recent news, Avanos Medical reported its Q2 2025 earnings, surpassing market expectations. The company achieved an adjusted earnings per share (EPS) of $0.17, outperforming the forecasted $0.15. Additionally, Avanos Medical’s revenue reached $175 million, exceeding the anticipated $165.8 million. Despite these positive earnings results, the stock experienced a decline. Analysts have noted the earnings surprise, which may influence future evaluations. These developments highlight Avanos Medical’s financial performance in the recent quarter. Investors may consider these results when assessing the company’s current position.
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