Fresenius Medical Care Fresenius Medical Kea

Fresenius Medical Care is a German company specializing in the organization of dialysis treatment, the development and production of equipment and consumables for renal replacement therapy. The group's production program includes a full range of products for the treatment of acute and chronic renal failure by hemodialysis and peritoneal dialysis.

In 2015, 50% of dialysis machines sold worldwide were manufactured by Fresenius Medical Care.

Aktivs

As of December 2017, Fresenius Medical Ker operates 3.624 thousand clinics in 45 countries of the world, where 310.73 thousand patients with chronic kidney disease are treated.

The company operates at more than 37 manufacturing sites on all continents, producing dialysis products such as dialysis machines, dialyzers and related consumables.

Fresenius Medical Care is headquartered in Bad Homburg, Germany. The headquarters of the North American segment of the company is located in Waltham, Massachusetts (USA) and the Asia-Pacific headquarters is located in Hong Kong.

In 2016, the company has more than 106,000 employees in more than 50 countries around the world.

In 2015, the R&D team had 559 full-time employees worldwide. R&D expenses in 2014 amounted to $122 million. The main activities are carried out in German centers in Schweinfurt and Bad Homburg. Other R&D centers are located in St. Wendel (Germany), Bucharest (Romania) and Krems (Austria). In the United States, in Concord and Lake Forest, California, the company has the best hardware development centers, and in Ogden, Utah, there is a center specializing in the development of dialysers and other disposable products. In China, activities are focused on meeting the growing demand for cost-effective dialysis systems.

Performance indicators

2020: Revenue growth of 2%, to €17.86 billion, net profit of €2.3 billion

According to the results of work in 2020, Fresenius Medical Care raised 17.86 billion euros, which is 2% more than in 2019. If you do not take into account currency fluctuations, then the indicator increased by 5%, the company notes.

The turnover of Fresenius Medical Care in North America in 2020 amounted to 12.48 billion euros, an increase of 2% compared to the previous year. In EMEA countries, revenue grew by 3%, to 2.76 billion euros. In the Asia-Pacific region, the company registered revenue at 1.89 billion euros. This is 2% more than in 2019.

Fresenius Medical Care's net profit, like revenue, increased by 2% in 2020 to reach 2.3 billion euros. Excluding one-time expenses and income, net profit decreased by 3%, to 1.16 billion euros.

Fresenius Medical Care revenue and net income up 2% in 2020

The company's profit from activities in North America in 2020 increased by 18% compared to 2019 and reached 2.12 billion euros. In EMEA, profit growth was at 8%, and the profit itself amounted to 412 million euros. In the Asia-Pacific region, Fresenius Medical Care's 2020 profit rose 4% to €344 million.

Summing up the results of 2020, Fresenius Medical Care noted that during this period the number of dialysis centers at the company increased by 2%, to 4092. 346,533 patients were served there in a year, which is approximately the same as a year ago. The number of procedures in clinics increased by 3%, to 53.6 million.

In 2020, Fresenius Medical Care increased the number of dialysis procedures USA at home by 14 American %. The market accounted for 14% of such procedures of the total number registered by the company. With home hemodialysis, the growth was 37%. Fresenius Medical Care noted that the coronavirus pandemic had a negative impact on the company's business. COVID-19^[1]

Business in Russia

Main article: Fresenius Medical Care in Russia

Business in Belarus

Main article: Frebor

Since 1989, Fresenius has been a co-founder of the Frebor joint venture for the production of hemodialysis products, located in Belarusian Borisov. Having failed to get a controlling stake, the company in 2015 left the joint venture. Read more here.

Business in Ukraine

Main article: Fresenius Medical Ker Ukraine

History

2023

Theft of data of 0.5 million patients as a result of a cyber attack

On December 6, 2023, the German company Fresenius Medical Care, one of the largest suppliers of products and services for patients with chronic kidney failure, reported a hacker invasion. The attackers managed to steal personal information about about 500 thousand patients and employees.

The documents sent to the US Securities and Exchange Commission (SEC) say that the incident occurred at the end of September 2023. The hackers targeted Cardioglass Consultants (CVC), a subsidiary of Fresenius Medical Care. Cybercriminals attacked American CVC computer systems, gaining unauthorized access to IT infrastructure. The investigation showed that the attackers stole a significant amount of personal data and encrypted certain files.

Fresenius Medical Care reported a hacker invasion

It is said that the attack affected the electronic medical records platform and the corporate repository, which contains information about registered and former patients with cardiovascular diseases and other persons. The incident also affected various applications and databases containing confidential information about employees. In total, hackers had at their disposal data on 0.5 million CVC customers and 200 employees who live in different American states and four countries.

Third-party experts in the field of information security were involved to investigate the incident. The company is investigating whether the attack could have affected another subsidiary, Fresenius Vascular Care, also located in the United States. As of December 6, 2023, there is no information about whether cybercriminals have requested any ransom for the stolen information. Fresenius Medical Care itself says the incident will not have a material impact on the company's financial performance and operations.^[2]

Recall of defective hemodialysis equipment causing liver problems and infertility

On October 24, 2023, the U.S. Food and Drug Administration (FDA) announced a recall of hemodialysis equipment manufactured by Fresenius Medical Care. The use of defective devices can result in serious health problems in patients, including infertility. Read more here.

2022

Giz Helen took over as CEO

On December 5, 2022, the German manufacturer of medical devices Fresenius announced that Fresenius Medical Care CEO Carla Krivet would leave the company after only about two months in this position. Read more here.

Carla Krivet took over as CEO

Fresenius Medical Care named Carla Crivet as the new CEO on May 4, 2022. She will succeed Rice Powell, who led the company for 10 years. Krivet will also become a member of the board of directors of the manufacturer of medical equipment. Read more here.

The creation of a company for the treatment of kidney diseases worth $2.4 billion

On March 21, 2022, Fresenius Medical Care reported that along with U.S. InterWell Health and Cricket Health, the group agreed to a three-way merger with its Fresenius Health Partners unit. Read more here.

2019

Revenue growth of 2% to €17.48 billion

In 2019, Fresenius Medical Care raised €17.48 billion, up 2% from a year earlier. Most of the medical device maker's business remains concentrated in North America, with annual revenue there rising from 11.57 billion euros to 12.2 billion euros.

In the EMEA market, the company's revenues increased from 2.59 to 2.69 billion euros. In the Asia-Pacific region, sales also increased, from €1.69 billion in 2018 to €1.86 billion a year later. In Latin America, the turnover was equal to 709.2 million euros, while in 2018 the figure was measured at 686.7 million euros.

Fresenius Medical Care Financial Performance

In 2019, the company earned 13.87 billion euros from the provision of medical services, which is 5% higher than a year ago. Sales of medical products during this time increased by 10% to 3.6 billion euros.

In 2019, Fresenius Medical Care performed 52.1 million kidney dialysis procedures, a 4% increase over the previous year.

Fresenius Medical Care's net profit at the end of 2019 reached 1.2 billion euros, down 42% from a year ago.

The company's profit in North America decreased from 2.67 billion euros in 2018 to 1.79 billion euros in 2019. In EMEA, profit rose from €399 million to €448 million, while in Asia-Pacific it increased from €304 million to €329 million. The company's profit in Latin America increased from 29 to 43 million euros.

It follows from the financial report that by the end of December 2019, the company had 120,659 employees against 112,658 the year before. The number of registered patents during this time increased from 333,331 to 345,096. Annual R&D spending reaches €168m

By the end of 2019, Fresenius Medical Care had opened a total of 3,994 dialysis centers worldwide. This is more than a year ago (3928).^[3]

Fresenius recalls defective dialysis tubes

In early September 2019, Fresenius Medical Care began recalling dialysis tubes through which a blood leak potentially threatening the patient's life occurs.

The German company Fresenius said that during use, dialysis tubes of two types (AV-Set B-R F00001124 and AV-Set SRB-R F00000257) began to rupture under pressure, which led to a blood leak. The dialysis machine is not able to detect such a leak, and Fresenius strongly recommends that medical professionals immediately stop using defective batches to avoid blood loss and air entering the patient's bloodstream.

Fresenius Medical Care has begun recalling dialysis tubes that leak blood

Regulators have not yet classified this recall, and the company does not disclose the number of victims or report any adverse events in connection with the leaks. It is known that 25 batches are subject to recall, which are considered defective and include 4,008 devices. All defective dialysis tubes were produced in November 2018 and managed to disperse to customers.

In an official letter, Fresenius apologizes to users for any inconvenience the defective products may have caused and promises to provide a replacement as soon as possible. The company is urging medical staff to extend the warning to colleagues and stop using defective materials. All buyers should be contacted by a Fresenius Medical Care representative as soon as possible to complete the replacement of the device.

This is not the first time Fresenius has recalled defective dialysis tubes - in April 2018 it had to recall a batch of tubes that proved too rigid and fragile and also led to blood leaks. The cause of the new defect has not yet been disclosed, but is probably due to a disruption of the manufacturing process. ^[4]

Plans to restructure global research operations

The company, a Fresenius Medical Care specialist in the field, dialysis announced plans to expand into international clinical research and combine research activities in Latin America, To Europe on Middle East To Africa and within the framework of a subsidiary, Frenova ("Frenova") which became known on July 9, 2019. More. here

Setting up a global office to conduct clinical trials

On March 22, 2019, it was reported that the dialysis products provider Fresenius Medical Care (Fresenius Medical Kea) has created a global medical office that will lead the conduct of clinical research and coordinate the exchange of knowledge and best practices in the company's global network of clinics.

Frank Maddax will head the office as global medical director, FierceBiotech reported; Robert Kossmann will take over as medical director for the North American territory. In addition, the functions of Jeffrey Himes, who is the medical director of Fresenius Kidney Care, will be expanded: he will become senior vice president of clinical research and science for Fresenius Medical Care North America.

Among the developments of Fresenius is the manager software (), ON developed by the therapy group in of kidney disease North America as part of the company. According to FierceBiotech, Food and Drug Administration the Food and Drug Administration (FDA, USFDA) recently granted this development the status of a "breakthrough product." The control software allows hemo machines dialysis to provide personalized recommendations for controlling the supply and purification of fluid during the monitoring of the patient's relative blood volume during dialysis procedures.^[5]

2018: €1m to create a database of patients in need of dialysis in Israel

On December 27, 2018, it became known that the German company Fresenius Medical Care is increasing its presence in Israel through investments in digital health technologies and Israeli companies.

Fresenius intends to invest a million euros in a project that will create a database of patients who need dialysis in the near future. The information contained in such a database, "Fresenius" will be shared with health funds so that patients can count on receiving the highest quality care^[6].

2017

Revenue growth of 7% to 17.8 billion euros

In 2017, Fresenius Medical Care's revenue was €17.8 billion, down 7% from a year earlier, and equates to more than half (52%) of the entire Fresenius group's turnover. The company noted that 2017 was a record year thanks to strong revenue growth in North America and the Asia-Pacific region.

Fresenius Medical Care Financial Performance

Annual sales of health services jumped 8% to reach €14.5 billion. Equipment sales were equal to 3.2 billion euros, an increase of 6% on an annualized basis. Buying companies and contracts with the United USA States Department of Veterans Affairs added 2% of revenue, but the negative effect of currency fluctuations reduced revenue by the same 2%.

Fresenius Medical Care's net profit topped €1.2 billion in 2017, beating its 2016 figure by 5%. The growth could have been higher if the company had not had to pay 236 million euros in connection with the update of tax legislation in the United States. In addition, the costs of eliminating the consequences of natural disasters and the payment of a fine for violating the law on corruption abroad (FCPA) affected.

Fresenius Medical Care Revenue Distribution in Terms of Service and Product Sales in North America and Rest of Regions

Research and development spending fell 11% to €131 million. Moreover, Fresenius Medical Care accounted for only 23% of the group's R&D investments.

The largest market for Fresenius Medical Care remains North America, where the company earned nearly 12.9 billion euros (roughly 73% of revenue) in 2017, against 12 billion euros a year earlier.

Sales of products and services in Europe, the Middle East and Africa (EMEA) increased by 6%, amounting to 2.5 billion euros. In the Asia-Pacific region, revenues increased by 10% (to 1.6 billion euros), in Latin America - by 12% (to 720 million euros). It is noted that the business of Fresenius Medical Care outside the United States suffered due to unfavorable fluctuations in exchange rates.

Fresenius Medical Care Revenue Breakdown by Region

It follows from the financial report that by December 31, 2018, the number of dialysis centers operated by Fresenius Medical Care reached 3,752 worldwide, including in Russia. Most of these centers (almost 2,400) are located in North America. There are 746 in EMEA, 232 and 381 in Latin America and Asia-Pacific, respectively.

The number of patients who came through such centers that help patients with kidney disease maintain health and life increased by 4% by the end of 2017 and reached almost 321 thousand. In North America, more than 197 thousand people were treated, in EMEA - about 62.5 thousand.

Fresenius Medical Care claims that the company has a leading position in the dialysis services market with a 35% share. Fresenius Medical Care accounts for about 10% of all patients undergoing dialysis worldwide.

As of December 31, 2017, Fresenius Medical Care had 41 manufacturing facilities producing dialysis and other medical equipment. The number of personnel amounted to 121,245 people, which is 4% more than a year ago. Annual costs for Fresenius Medical Care employees rose from €6.3 million to €6.9 million, the highest in the group. Fresenius Medical Care also has the largest share of procurement costs for materials - 51%.

2017 marked Fresenius Medical Care with several acquisitions that allowed the company to expand its network of clinics. So, the Cura Group was absorbed with its 19 hospitals, as a result of which the Fresenius Medical Care network in Australia grew to 40 centers. In addition, dialysis equipment manufacturer NxStage Medical was acquired.^[7]

 NxStage Medical acquisition for $2 billion

In August 2017, the German manufacturer of products and services for patients with chronic renal failure Fresenius Medical Care announced the  purchase of NxStage Medical for $2 billion. Read more here.

3,400 dialysis clinics and 300,000 patients

As of mid-2017, there are more than 3,400 dialysis clinics and about 300,000 patients in the global Fresenius Medical Care network.

2016: Getting started in Israel

Fresenius began operations in Israel in 2016. The company became the owner of 30 institutions that provide assistance to 2,300 patients with various kidney diseases.

2015: Revenues of €16.7 billion

In 2015, Fresenius Medical Care's revenue was over €16.7 billion.

2013: 3,250 dialysis clinics and revenue of $14.6 billion

Fresenius Medical Care's annual turnover in 2013 exceeded $14.6 billion. The company owns more than 3,250 dialysis clinics worldwide, where 270,122 patients are treated. Fresenius Medical Care employs more than 90,690 people worldwide.

Entrance to Fresenius Medical Care Headquarters

1966: Specialization in Intensive Care and Dialysis

After World War II, a new stage of development begins for the company - specialization in the field of intensive care and dialysis.

1934: Business split into pharmacy and pharmaceutical

In 1933-1934 there was a division of business. One segment of the company was engaged in the production of pharmaceuticals, the other - pharmacies.

1920s: Start of insulin supplies to German clinics

In the 1920s, Fresenius Medical was one of the first to supply newly invented insulin to clinics. Germany

1912: The beginning of the production of pharmaceuticals

In 1912, pharmacist and pharmacy owner Eduard Fresenius began production of pharmaceuticals, which use a pharmacy laboratory to create. The main product of the company at that time was nasal ointments, serological reagents and injection solutions.

1743: Fresenius family takes over pharmacy

The Fresenius family takes over the pharmacy in 1743.

1462: Hirsch Pharmacy Opens

The opening of a pharmacy in 1462 in Frankfurt (Germany) is considered the beginning of the company.

Notes