Fresenius is a Germany-based dialysis service clinic. It's got its branch across the globe. American depositary shares of German dialysis giant Fresenius Medical Care climbed 46.9% $25.85. It follows that treating this grave condition can be a lucrative business.
Kidney failure affects the populations of rich countries and also due to high rates of diseases like hypertension and diabetes, the number of U.S. dialysis patients has escalated in recent years. As the world's largest dialysis company, its growth could continue as diabetes and obesity rates climb in the U.S. and countries such as India and China. The treatment for dialysis patients extends for about a week. The National Kidney Foundation estimates there are 275,000 more cases every year. Dialysis is a sought after procedure because there is a growing scarcity among the transplantation procedures and it is much cheaper than those procedure. Without dialysis patients usually die within weeks.
AdvertisementAccording to the United Network for Organ Sharing, more than 64,000 people are waiting for kidneys in the U.S. Annie Moore a spokesperson said that transplants is still relatively scarce and hence a majority of patients have to depend on dialysis.
For 2005, the company earned $455 million in net income on $6.77 billion in revenue. At the end of 2005, it operated about 1,155 clinics in North America administering a combined 13.47 million treatments. Fresenius also operates in 525 clinics, which pulled in $208 million outside North America. Mansi Kothari, research manager for the medical-devices group at consultant Frost & Sullivan said that the various products are filters and fluids. Their products are better than the reusable variety.
The company is still growing and plans to open about 1,500 clinics on the continent serving about 115,000 patients. Fresenius is also looking in investing in Asia where there is an increased necessity of dialysis due to the rising rates of obesity and diabetes.
In many kidney patients with kidney failure, or end-stage renal disease (ESRD) they are elderly, disabled, or come from lower-income brackets. Hence their expenditure is covered by the Medicare. But Kothari says Fresenius earns more per procedure when patients are covered by private insurers. Despite all this the growing necessity of dialysis among kidney patients is felt across the globe and Fresenius and Davita suggest a promising future.