NxStage Medical

NxStage Medical is the American producer of the medical equipment for treatment of a serious illness of kidneys. The company offers the equipment for dialysis.

NxStage locates a portfolio of medical products for application as when carrying out dialysis in house conditions, and in intensive care units.

Performance Indicators

2016

In 2016 revenue of NxStage Medical made $366 million. Losses at the same time were reduced from 15 to 5 million dollars.

History

2017: Fresenius Medical Care buys NxStage for $2 billion

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

The cost of the transaction in terms of the stock NxStage is $30 that honor one third more quotation rate to closing of the exchange on August 4, 2017. It is going execute all formalities concerning this transaction in 2018. It was approved by Board of Directors of NxStage. Still shareholders of the company and regulating authorities should state the solutions.

Fresenius headquarters

Fresenius is going to finance purchase of NxStage at the expense of free funds and attraction of a debt. The German company calculates that the synergy effect of the transaction in the next 3-5 years will be $80-100 million before payment of taxes.

Expenses on integration of two companies are estimated approximately at $150 million, reported in the press service of Fresenius. Acquisition of NxStage is intended "strengthen and diversify" business of Fresenius in the American market. The company expects to gain maximum benefit from a production system, supply chains and the systems of marketing for creation of the combined products and services which can be used in different conditions of delivery of health care.^[1]

Analysts of Bernstein consider that purchase of NxStage makes strategic sense for Fresenius Medical in the conditions of development of the integrated model of patient care and the growing popularity of services of treatment of patients at home.

According to the experts, within the transaction of NxStage it was estimated approximately at 15 times more of the expected profit of the company that approximately corresponds to other similar merges in the market of medical technologies.

The stocks Fresenius since the beginning of 2017 fell in price by 6%, the quotations of NxStage decreased by 12%.^[2]

Notes