Nephros makes and sells point-of-use water filtration products, with a primary focus on medical-grade filters for hospitals and dialysis clinics. Its core products are FDA 510(k)-cleared microfilters and ultrafilters that physically block bacteria, viruses, and endotoxins at water outlets like sinks, showers, and ice machines. Hospitals use these filters to reduce waterborne pathogens — primarily Legionella and Pseudomonas — and to comply with CMS and Joint Commission water management requirements. Nephros also sells ultrafilters for dialysis water purification, installed downstream of reverse osmosis systems as a final barrier against microbial and endotoxin contamination. A smaller, growing commercial filtration line addresses taste, odor, scale, lead, and PFAS in foodservice, hospitality, and other settings. Nephros sells primarily through distributors, supplemented by a direct sales force. Revenue is driven by replacement filter sales — filters have rated service lives of months, creating recurring reorders — and a growing installation and service program where Nephros technicians handle filter installation and replacement under contract, improving retention and expanding within accounts. Nephros does not manufacture its medical-grade filters; Medica in Italy manufactures them exclusively under a long-term supply agreement. Nephros operates with roughly 36 employees and low-to-mid 60% gross margins. Growth is focused on deeper hospital penetration, expanding into adjacent verticals like correctional facilities, schools, and dental offices, and positioning its PFAS product as an entry point into new customer segments.
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