Fresenius Medical Care News - Press release https://www.freseniusmedicalcare.com/en/home/news.rss en Thu, 13 Dec 2018 10:32:17 +0100 Thu, 13 Dec 2018 10:32:17 +0100 TYPO3 EXT:news news-1614 Wed, 12 Dec 2018 00:00:00 +0100 Unicyte AG to collaborate with Medical Center Hamburg-Eppendorf on innovative treatments for patients with kidney disorders https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/unicyte-ag-to-collaborate-with-medical-center-hamburg-eppendorf-on-innovative-treatments-for-patient/ Unicyte AG, a subsidiary of Fresenius Medical Care, has initiated a long-term research collaboration with Prof. Dr. Tobias B. Huber of Germany’s Medical Center Hamburg-Eppendorf (UKE) to explore the molecular and cellular mechanisms of kidney diseases. Press Release

Unicyte AG, a subsidiary of Fresenius Medical Care, has initiated a long-term research collaboration with Prof. Dr. Tobias B. Huber of Germany’s Medical Center Hamburg-Eppendorf (UKE) to explore the molecular and cellular mechanisms of kidney diseases.

Prof. Huber, Chair of the III. Department of Medicine at UKE, a major university hospital, is a leading expert on glomerular diseases. He will direct the research program, which aims to address various forms of kidney disease including diabetic nephropathy. The goals of the collaboration are to gain further insights into the process leading to the gradual decline in renal function and to identify genetic, signaling and soluble factors involved in the underlying mechanisms.

Unicyte, a leading regenerative medicine company with translational programs in the field of kidney disorders and other illnesses, is building on successful partnerships with other academic partners. These include a collaboration of 15 years’ standing with the University of Torino in Italy.

Dr. Olaf Schermeier, Fresenius Medical Care’s CEO for Global Research and Development, said: “As Unicyte’s organizational structure is designed to leverage the benefits of academia-industry partnerships, the collaboration with Prof. Huber offers a unique opportunity to help patients with kidney disorders by developing innovative treatment options based on a holistic understanding of renal dysfunction. I’m very excited about this collaboration with one of the leading hospitals in Europe, as it could lead to new treatment options that will complement current kidney care.”

Prof. Tobias B. Huber stated: “Because fundamental scientific questions concerning the pathomechanisms of kidney diseases remain to be answered, we will further explore the potential of new options for the treatment of kidney patients in pre-dialysis stages. The collaboration with Unicyte as industry partner will be fruitful in developing a therapy from pre-clinical research through to clinical practice. Our goal is to provide excellent new therapies, reduce the burden of disease, and significantly improve the lives of our patients.”

 

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,872 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 329,085 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Unicyte AG is a regenerative medicine company with a focus on kidney & liver disorders, diabetes and oncology. Unicyte evolved from a long-term research collaboration of Italy’s University of Turin and Fresenius Medical Care. Unicyte is headquarted in Oberdorf NW, Switzerland, and is an independent affiliate of Fresenius Medical Care, the world's largest provider of products and services for individuals with renal diseases.
For more information visit the company’s website at www.unicyte.ch.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 News Press release
news-1612 Mon, 10 Dec 2018 12:00:13 +0100 PwC proposed as auditor for 2020 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/pwc-proposed-as-auditor-for-2020/ The Supervisory Board of Fresenius Medical Care AG & Co. KGaA has decided to propose PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft as the auditor for the financial year 2020. The Supervisory Board of Fresenius Medical Care AG & Co. KGaA has decided to propose PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft as the auditor for the financial year 2020. The shareholders will decide on the appointment at the Annual General Meeting in 2020.

New regulations provide for a regular rotation of the auditor, so that it was not possible to extend the existing mandate of KPMG AG Wirtschaftsprüfungsgesellschaft in the long term.

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2018 News
news-1609 Fri, 07 Dec 2018 09:00:00 +0100 Fresenius Medical Care gives early preliminary indicative guidance for 2019 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-gives-early-preliminary-indicative-guidance-for-2019/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to update the market early by providing its indicative preliminary assumptions for the business development in 2019. Press Release

  • For 2019, an indicative and preliminary assumption of

    • solid revenue growth on a comparable basis1 
    • net income2 at around the FY 2018 level on a comparable basis1

  • Use of cash currently under evaluation

Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to update the market early by providing its indicative preliminary assumptions for the business development in 2019.

“With the pending acquisition of NxStage Medical Inc., the corresponding build out of our home dialysis services infrastructure in the United States as well as investments in future growth markets in the Products as well as the Services business such as China, we have an investment year ahead of us,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. ”We would like to share as an early indication that 2019 will have a clear focus on preparing the company for future sustainable, profitable growth. For 2019, we currently broadly assume solid comparable1 revenue growth and the comparable1 net income to be around the level of FY 2018.”

Fresenius Medical Care remains committed to a continuous optimization of its business, weighing future sustainable, profitable growth opportunities of potential investments and implied risks. From a global perspective, Fresenius Medical Care invests in new products as well as growth markets such as China. From an operational perspective, the company invests to increase the global home dialysis penetration and from an innovation perspective, the company makes investments such as in Humacyte Inc. to meet unmet medical needs.

Fresenius Medical Care is reviewing all factors as part of its budgeting process and plans to publish the guidance for 2019, at the usual level of detail, along with the company’s fiscal year 2018 results, which are planned to be released on February 20, 2019.

Targets 2020

Fresenius Medical Care intends to reset its 2020 constant currency targets to also reflect the IFRS accounting changes, the divesture of Sound Inpatient Physicians Holdings and the pending acquisition of NxStage Medical Inc., all as highlighted in the previous quarter. The reset targets are scheduled to be published along with the company’s fiscal year 2018 results, which are planned to be released on February 20, 2019.

Conference call

Fresenius Medical Care will host a conference call on December 7, 2018, at 9:00 a.m. CET. Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available on the same day of the call.

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,815 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 325,188 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

For more information visit the company’s website at www.freseniusmedicalcare.com.

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,872 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 329,085 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
The scheduled date of February 20, 2019 for announcement on the guidance for 2019 and 2020 is subject to compliance with applicable laws, i.e. if applicable legal regimes so demand, the publication may occur at an earlier point in time. Furthermore, this release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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1 “comparable” is on a constant currency basis and reflects an adjustment for those effects that are as per the company´s view not related to the company´s operating business performance such as, for example, the effects of IFRS 16, sizeable portfolio changes like the divestiture of Sound Inpatient Physicians Holdings or the pending acquisition of NxStage Medical Inc. or other effects of one-time nature like FCPA-related charges or the cost of the 2018 U.S. ballot initiatives. For the preliminary indicative 2019 guidance the “comparable” 2018 basis translates roughly at current currencies for revenue in a range of 15,850 – 16,050 EUR million and for net income in a range of 1,350 – 1,365 EUR million. This is subject to fluctuations in the currency rates in the fourth quarter of 2018.

2 Net income attributable to shareholders of FMC AG & Co. KGaA

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2018 Press release
news-1605 Wed, 05 Dec 2018 00:00:00 +0100 Fresenius Medical Care announces acquisition of renal hospitals and dialysis centers in China https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-announces-acquisition-of-renal-hospitals-and-dialysis-centers-in-china/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, continues to expand its dialysis care network through the acquisition of further dialysis centers and renal hospitals in China. Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, continues to expand its dialysis care network through the acquisition of further dialysis centers and renal hospitals in China. The company acquired a 70% share of Guangzhou KangNiDaiSi Medical Investment Co., Ltd, which focuses on dialysis and related chronic disease services. KangNiDaiSi has three independent hemodialysis centers under construction in the cities of Guangzhou and Zhaoqing in Guangdong province, which borders Hong Kong in southeast China. A proposed fourth center in Guangzhou awaits government approval.

Fresenius Medical Care also acquired 55% stakes in Henan Aishen Hospital Management Co. Ltd (Henan Aishen) and Aishen Beijing Hospital Management Co., Ltd (Aishen Beijing). Henan Aishen and Aishen Beijing are building 13 dialysis centers and a grade I renal hospital to complement the dialysis care network that will cover Henan, Shandong, Guangdong and Hainan provinces. There are further plans to expand into new locations in the future. In addition, the company has taken a 60% share of Daqing Kangda Dialysis Center Co., Ltd in Heilongjiang province.

The acquisitions follow the purchase of Yunnan Kunming Wuhua Healthcare Hospital in April 2017, and the acquisition of a 70% share of Sichuan Hejiang Kangcheng Renal Hospital in June 2018 as well as the acquisition of a 70% share of Sichuan Ziyang Zhongxin Hospital, both located in the Sichuan province.

Rice Powell, CEO of Fresenius Medical Care, said: “Fresenius Medical Care is committed to improving access to world-leading dialysis technology and chronic disease management services for the more than 120 million people in China who are living with chronic kidney disease. These acquisitions mark an important strategic step in our business development in China. As the second largest product market, China is already today an important business growth driver for Fresenius Medical Care. We have been continuously investing in enhancing our product range within the local market. We have also started to enter the provider business to introduce advanced dialysis services and operations management in China.”

“As a leading provider of dialysis products and services in China, we are eager to work with other companies that are dedicated to elevating the treatment of kidney disease in this huge country. In particular, we focus on increasing access to treatment in rural areas, where there have traditionally been fewer options for patients,” said Harry de Wit, CEO of Fresenius Medical Care Asia-Pacific. “We strive to introduce our world-leading chronic disease management system and high-quality dialysis treatment services throughout the country. And we will continue to search for opportunities to partner with institutions from the public and private sectors and invest in new dialysis centers and renal hospitals.”

The prevalence of chronic kidney disease (CKD) in China is 10.8% of the adult population, which equates to more than 120 million people. According to research conducted by the Chinese Society of Nephrology, there currently are one million ESRD patients registered in China, but only around 500,000 receive dialysis treatment.

 

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,872 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 329,085 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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Notes to editors

About Guangzhou KangNiDaiSi Medical Investment Co., Ltd

The business scope of Guangzhou KangNiDaiSi Medical Investment Co., Ltd includes renal hospital management as well as investment consulting services. The current company focus is on providing hemodialysis and related chronic disease services. Apart from owning three independent dialysis centers in Guangzhou and Zhaoqing, which are currently under construction, there is a forth dialysis center currently under government approval for Guangzhou, Guangdong.

About Hejiang Kangcheng Renal Hospital

Sichuan Hejiang Kangcheng Renal Hospital will be the key platform and starting point for Fresenius Medical Care to extend its high-quality dialysis service and chronic disease control program. The renal hospital treats patients with chronic disease such as diabetes and high blood pressure. As a designated hospital for basic medical insurance in Sichuan and work-related injury medical insurance in Luzhou, the hospital also provides medical services to social security insurance policy holders in the Luzhou area.

Fresenius Medical Care plans to add six more dialysis stations to the hospital in 2019 to serve 120 patients. The company also plans to build a “Kangcheng Chronic Disease Control Center” to continuously enhance the quality of its dialysis service and expand to neighboring areas in Hejiang county medical network, in addition to fulfilling the medical needs of patients in the main urban area.

About Henan Aishen Hospital Management Co., Ltd

Henan Aishen Hospital Management Co., Ltd was founded in April 2012. Its main focus is the sales of dialysis products and management of dialysis centers. It has established dialysis service collaborations with numerous public hospitals in Henan province. Current projects include the design, construction, staff recruitment and training for independent dialysis treatment centers. The joint venture is expected to have at least seven independent dialysis centers in Henan province during the next months.

About Aishen Beijing Hospital Management Co., Ltd

Aishen Beijing Hospital Management Co., Ltd was founded in September 2010. The company's goal is to expand dialysis treatment service across the country. After years of collaborating with other companies, Aishen Beijing Hospital Management Co., Ltd has accumulated abundant medical resources and built a robust business development strategy. Its joint venture projects will include the design, construction, staff recruitment and training for independent dialysis treatment centers. The joint venture is expected to have at least seven independent dialysis centers in Shandong, Guangdong and Hainan province during the next months.

About Daqing Kangda Dialysis Center

Daqing Kangda Dialysis Center is an independent dialysis treatment center approved by Health and Family Planning Commission of Heilongjiang Province. It is located in Datong District of Daqing with 1,200 square meters and 20 dialysis machines. Renovation of the center was completed in April 2018. The center will gradually increase its number of dialysis stations and will improve the level of its dialysis services by applying Fresenius Medical Care standards to staff training and medical management.

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2018 News Press release
news-1603 Mon, 03 Dec 2018 00:00:00 +0100 Saarland Minister of Social Affairs Monika Bachmann visits Fresenius Medical Care plant in St. Wendel https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/saarland-minister-of-social-affairs-monika-bachmann-visits-fresenius-medical-care-plant-in-st-wende/ Sorry, there is no translation of this page available.

Bitte entschuldigen Sie: Es steht leider keine Übersetzung dieser Seite zur Verfügung.

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2018 News Press release
news-1589 Wed, 07 Nov 2018 08:23:42 +0100 Fresenius Medical Care comments on successful defeat of the ballot initiative Proposition 8 in California https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-comments-on-successful-defeat-of-the-ballot-initiative-proposition-8-in-calif/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, today released the following statement in response to the defeat of the ballot initiative Proposition 8 in California. Press Release

“We are pleased that California voters have rejected Proposition 8 in yesterday’s ballot election. This is a big win for California dialysis patients,” said Rice Powell, CEO of Fresenius Medical Care. “Proposition 8 was a deeply flawed measure that would have dangerously reduced access for dialysis patients in California by setting arbitrary limits on what insurance companies are required to pay for dialysis care. We at Fresenius Medical Care are committed to offering high-quality products and services to our patients and will continue to do so in California and around the world.”


Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,872 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 329,085 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1580 Tue, 30 Oct 2018 07:00:00 +0100 Fresenius Medical Care publishes results for third quarter and first nine months 2018 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-publishes-results-for-third-quarter-and-first-nine-months-2018/ Patient growth continues across all regions Operating margin in North America improved to 18.5% in the third quarter Dialysis Care revenue growth in North America of 6% (+5% at constant currency) Press Release Financial Tables

  • Patient growth continues across all regions
  • Operating margin in North America improved to 18.5% in the third quarter
  • Dialysis Care revenue growth in North America of 6% (+5% at constant currency)
  • Decline in Care Coordination revenue following Sound divestiture
  • Outlook 2018 reflects lower than expected growth acceleration in Q3 and anticipation of soft business development in Q4 2018

Key figures (IFRS)

EUR million Q3 2018 Q3 2017 Growth yoy Growth yoy, cc 9m 2018 9m 2017 Growth yoy Growth yoy, cc
Revenue 4,058 4,336 -6% -6% 12,247 13,355 -8% -2%
Revenue on a comp. basis1 4,058 3,966 2% 3% 12,247 12,715 -4% 3%
Operating income (EBIT) 527 609 -13% -20% 2,425 1,843 32% 39%
EBIT on a comp. basis1 615 589 5% 4% 1,698 1,823 -7% -2%
Net income2 285 309 -8% -17% 1,557 886 76% 86%
Net income on a comp. basis1,2 364 304 20% 19% 969 881 10% 16%
Net income adjusted1,2 310 314 -1% -2% 832 837 -1% 4%
Basic EPS (EUR) 0.93 1.01 -8% -17% 5.08 2.89 76% 86%
Basic EPS on a comp. basis1 1.19 0.99 20% 19% 3.16 2.87 10% 16%

cc = at constant currency, EPS = earnings per share

Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “Our third quarter was affected by several developments whose combined impact on our results was greater than expected. Growth did not accelerate to the extent previously projected. We anticipate the impact from the current level of growth and less acquisitions to continue in the fourth quarter. We have identified countermeasures and have begun implementation. Fresenius Medical Care’s growth will continue.”

Growth in Dialysis Care revenue

Revenue in the third quarter 2018 decreased by 6% to EUR 4,058 million (-6% at constant currency), mainly driven by the higher comparable base which included the Q3 2017 revenue contribution from Sound Inpatient Physicians (“Sound”) of EUR 253 million as well as the impact from the IFRS 15 implementation (“IFRS 15”) of EUR 117 million. Excluding these two effects, revenue increased by 2% on a comparable basis (+3% at constant currency), mainly driven by an increase in same market treatments in North America of 3%.

Health Care Services revenue decreased by 8% to EUR 3,258 million (-8% at constant currency), primarily driven by the two effects described above (Sound and IFRS 15). On a comparable basis, Health Care Services revenue increased by 3%, mainly driven by organic growth in Dialysis Care revenue resulting from higher volumes, partly offset by the largely anticipated revenue decline in Care Coordination. Care Coordination revenue declined by 53% to EUR 354 million (-56% at constant currency), mainly resulting from the sale of Sound and the IFRS 15 implementation. On a comparable basis, Care Coordination revenue declined by 22% (-27% at constant currency). This decline was mainly the result of the shift of calcimimetic drugs into the clinical environment and a higher prior-year revenue contribution due to the initial revenue recognition for the new 2017 ESCOs. Health Care Products revenue was flat at EUR 800 million (+1% at constant currency), mainly impacted by the difficult economic environment in certain emerging countries in the EMEA and Latin America regions. At constant currency, Dialysis Products revenue increased by 2% driven by higher sales of renal pharmaceuticals and products for acute care treatments, partially offset by lower sales of chronic hemodialysis products.

In the first nine months of 2018, revenue decreased by 8% to EUR 12,247 (-2% at constant currency), mainly driven by the effects of Sound and IFRS 15. On a comparable basis, revenue decreased by 4%, impacted by negative foreign currency effects (+3% at constant currency).


Operating income (EBIT) impacted by one-time effects

Total EBIT reached EUR 527 million in the third quarter of 2018, a decrease of 13% (-20% at constant currency). The strong decrease was mainly attributable to the higher comparable base which included the EBIT contribution from Sound of EUR 20 million. In addition, the increased provision for the FCPA related charge in the amount of EUR 75 million and the contributions to the opposition to the ballot initiatives in the U.S. of EUR 23 million (both not tax effected) as well as a EUR 10 million favourable foreign currency translation effect related to the divestitures of Care Coordination activities affected the EBIT growth. The increase of the FCPA provision reflects an understanding with the U.S. Government on the financial aspects of a potential settlement and an update of ongoing legal costs to continue settlement discussions. However, significant non-financial matters are still under discussion with the government and must be resolved to the company’s satisfaction for a settlement to occur. In addition, EBIT was negatively impacted by the difficult economic situation in certain emerging countries, including hyperinflation in Argentina. On a comparable basis, EBIT increased by 5% (+4% at constant currency).

In the first nine months of 2018, EBIT increased by 32% (+39% at constant currency). The strongest contributor to this increase was the gain related to the divestitures of Care Coordination activities. On a comparable basis, EBIT decreased by 7% (-2% at constant currency).

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA decreased by 8% to EUR 285 million in the third quarter of 2018 (-17% at constant currency). On a comparable basis net income increased by 20% to EUR 364 million (+19% at constant currency). Based on the number of approximately 306.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) amounted to EUR 0.93 (-8%). On a comparable basis the company generated an EPS of EUR 1.19, representing an increase of 20% (+19% at constant currency).

In the first nine months of 2018, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 76% (+86% at constant currency) to EUR 1,557 million, mainly driven by the gain related to the divestitures of Care Coordination activities. On a comparable basis, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA reached EUR 969 million, an increase of 10% (+16% at constant currency).


Patient growth continues across all regions


North America revenue, which represents 70% of total revenue in the third quarter of 2018, decreased by 9% to EUR 2,843 million (-11% at constant currency) and increased by 4% on a comparable basis (+1% at constant currency). Organic growth in North America was 2%.

Dialysis Care revenue increased by 6% to EUR 2,328 million (+5% at constant currency). This increase was mainly driven by an increase in organic revenue per treatment, same market treatment growth of 3% in the U.S. and contributions from acquisitions, to some extent diluted by the implementation of IFRS 15 and the effect of 1 less dialysis day. Volume growth in North America was positively impacted by a strong increase in home dialysis in the third quarter, leading to a home penetration rate in the U.S. of 12.4%. On a comparable basis, Dialysis Care revenue increased by 9%, partly compensated by negative growth in the acute services business following the termination of unprofitable contracts as well as the delay of certain de novo clinics. Care Coordination revenue decreased by 57% to EUR 300 million (-61% at constant currency), mainly driven by the prior-year revenue contribution from Sound as well as the implementation of IFRS 15. On a comparable basis, Care Coordination revenue decreased by 25% (-32% at constant currency). This decrease was mainly driven by the shift of calcimimetic drugs into the clinical environment as well as a higher prior-year revenue contribution due to the initial revenue recognition for the new 2017 ESCOs.

In the U.S., the average revenue per treatment, adjusted for the implementation of IFRS 15 and excluding the 2017 impact of the VA Agreement, increased by USD 15 from USD 341 to USD 356. The increase was mainly driven by the shift of calcimimetic drugs into the clinical environment, partially offset by lower revenue from commercial payors.

Cost per treatment in the U.S., adjusted for the implementation of IFRS 15 and prior-year natural disaster cost, increased by USD 19 from USD 271 to USD 290. This increase was largely a result of the introduction of calcimimetic drugs in the clinical environment, increased property and other occupancy related costs as well as the impact from one less dialysis day.

Dialysis Products revenue in North America increased by 2% to EUR 215 million (+1% at constant currency) due to higher sales of renal pharmaceuticals, peritoneal dialysis products, partially offset by lower sales of chronic hemodialysis products.

Total EBIT for the North America segment was EUR 525 million in the third quarter, an increase of 9% (+2% at constant currency). On a comparable basis, EBIT was EUR 538 million, an increase of 16%. The EBIT margin increased to 18.5% (18.9% on a comparable basis). The increase in EBIT margin on a comparable basis was mainly due to lower personnel expenses and the positive impact from income attributable to a consent agreement on certain pharmaceuticals.

In the first nine months of 2018, North America revenue decreased by 12% to EUR 8,589 million (-5% at constant currency). On comparable basis, revenue decreased by 5% (+1% at constant currency). Mainly driven by the gain related to divestitures of Care Coordination activities, EBIT went up by 47% (+57% at constant currency) to EUR 2,173 million in the first nine months of 2018.

As of the end of September 2018, the company was treating 201,220 patients (+3%) at its 2,486 clinics (+5%) in North America. Dialysis treatments increased by 3%.

EMEA revenue decreased by 2% (+1% at constant currency) to EUR 620 million in the third quarter of 2018, mainly driven by the positive development in Health Care Services revenue which increased by 4% at constant currency. The increase in Health Care Services revenue was driven by same-market treatment growth (+3%) and acquisitions, partially offset by the effect of sold and closed clinics as well as one less dialysis day. Health Care Products revenue decreased by 5% (-3% at constant currency) to EUR 306 million. Dialysis Products revenue decreased by 5% (-2% at constant currency), mainly due to lower sales of dialyzers, partially offset by higher sales of machines.

EBIT was EUR 88 million in the third quarter of 2018, a decrease of 18% (-16% at constant currency). The EBIT margin decreased from 16.8% to 14.1%, mainly due to the favorable prior-year impact from a legal settlement, higher personnel costs in certain countries, the impact of one less dialysis day and unfavorable foreign currency translation effects.

In the first nine months of 2018, EMEA revenue increased by 1% to EUR 1,908 million (+4% at constant currency), while EBIT of EUR 302 million was 10% below the prior year´s level (-9% at constant currency).

As of the end of September 2018, the company had 64,539 patients (+4%) being treated at 769 clinics (+5%) in the EMEA region. Dialysis treatments increased by 4%.

Asia-Pacific revenue grew by 3% to EUR 421 million (+4% at constant currency) in the third quarter of 2018. Dialysis Products showed again a solid business performance, with revenue growing 4% to EUR 227 million (+6% at constant currency). This growth was mainly driven by higher sales of hemodialysis products and products for acute care, particularly in China and Indonesia. Health Care Services revenue in the region increased by 1% to EUR 194 million (+1% at constant currency). Care Coordination revenue increased by 4% to EUR 54 million (+7% at constant currency). The growth in Care Coordination revenue in Asia Pacific was mainly related to a strong organic revenue growth and acquisitions. EBIT decreased by 14% to EUR 66 million (-14% at constant currency). The EBIT margin decreased to 15.7%, driven by unfavorable foreign currency transaction effects and increased costs for business growth.

In the first nine months of 2018, Asia-Pacific revenue increased by 2% to EUR 1,235 million (+8% at constant currency). EBIT decreased by 8% to EUR 218 million (-5% at constant currency).

As of the end of September 2018, the company had 31,152 patients (+3%) being treated at 390 clinics in Asia-Pacific (0%). Dialysis treatments increased by 2%.

Latin America delivered revenue of EUR 171 million in the third quarter of 2018, a decrease of 2%, but an increase of 27% at constant currency. The growth at constant currency was mainly due to a strong growth in Health Care Services (+34% at constant currency) driven by an increase in organic revenue per treatment mainly due to hyperinflation in Argentina, acquisitions and growth in same market treatments (+1%). Health Care Products revenue in Latin America decreased by 5% to EUR 49 million, but increased by 9% at constant currency. The increase in constant currency was due to higher sales of machines and products for acute care. EBIT in the third quarter was negative at EUR -1 million following the effects of hyperinflation in Argentina as well as unfavorable foreign currency transaction effects and higher bad debt expense. The EBIT margin was therefore also negative (-1%).

In the first nine months of 2018, Latin America revenue decreased by 6% to EUR 505 million, but increased by 18% at constant currency. EBIT was EUR 24 million, a decrease of 47% (-56% at constant currency).

As of the end of September 2018, the company was treating 32,174 patients (+5%) at 227 clinics in Latin America (-1%). Dialysis treatments increased by 4%.

Corporate cost in the third quarter were EUR 76 million on a comparable basis (flat at constant currency). Including the increased provision for the FCPA related charge in the amount of EUR 75 million, corporate cost amounted to EUR 151 million.

Net interest expense was EUR 74 million compared to EUR 86 million in the third quarter of 2017, a decrease of 14% (-14% at constant currency). The decrease was driven by a decreased debt level and interest income from the investment of the Sound proceeds. Income tax expense was EUR 104 million in the third quarter of 2018, which translates into an effective tax rate of 22.9%, compared to last year’s Q3 tax rate of 29.0%. The strong reduction was largely driven by the U.S. Tax Reform and the gain related to divestitures of Care Coordination activities, partly offset by non-tax-deductible expenses (mainly 2018 FCPA related charges and U.S. ballot initiatives).


Cash flow


In the third quarter of 2018, the company generated EUR 609 million of operating cash flow, compared to EUR 612 million in the previous year’s third quarter. This slight decrease was mainly driven by higher tax payments and discretionary contributions to pension plan assets in the U.S., almost fully offset by decreases in accounts receivable. Operating cash flow in percent of revenue was 15.0% in the third quarter of 2018. The number of days sales outstanding decreased sequentially by five days compared with Q2 2018 to reach 77 days. Free cash flow (Net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR 352 million for the three months ended September 30, 2018 compared to EUR 386 million for the same period of 2017. Free cash flow in percent of revenue was 8.7% and 8.9% for the three months ended September 2018 and 2017, respectively.


Outlook 2018


The company expects revenue3 growth between 2% and 3% at constant currency. Net income on a comparable basis4 is expected to increase by 11% to 12% at constant currency and on an adjusted basis4,5 to increase by 2% to 3% at constant currency.

The targets exclude the effect from the planned acquisition of NxStage Medical.


Other updates


Regarding the planned acquisition of NxStage Medical, Inc. the parties have agreed to extend their closing deadline to February 5, 2019, but continue to expect closing within this year.

As of September 30, 2018, Fresenius Medical Care had 112,134 employees (full-time equivalents) worldwide, compared to 113,648 employees at the end of September 2017. This decrease was mainly attributable to the divestiture of Sound.

There will be a change to the composition of the Supervisory Board. Deborah Doyle McWhinney will resign effective November 1, 2018 due to private reasons. A replacement process has been initiated.


Conference call


Fresenius Medical Care will host a conference call to discuss the results of the third quarter on October 30, 2018, at 3:30 p.m. CET / 10:30 a.m. EDT. Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.


1 For a detailed reconciliation, please refer to the table at the end of the press release
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
3 2017 adjusted for the effect of IFRS 15 implementation and the contribution of Sound Physicians in H2 2017
4 Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA, adjusted for the contribution from Sound Physicians in H2 2017 and gain/loss related to divestitures of Care Coordination activities, 2018 FCPA related charge and U.S. Ballot Initiatives.
5 VA Agreement, Natural Disaster Costs, 2017 FCPA related charge, U.S. Tax Reform

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,872 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 329,085 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1581 Mon, 29 Oct 2018 00:00:00 +0100 Professor Dr. Gregor Zünd appointed for the Supervisory Board of Fresenius Medical Care https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/professor-dr-gregor-zuend-appointed-for-the-supervisory-board-of-fresenius-medical-care/ Fresenius Medical Care today announced that the request of Fresenius Medical Care to appoint Prof. Dr. Gregor Zünd as new member of the Supervisory Board of Fresenius Medical Care AG & Co. KGaA has been granted by the responsible court. Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, today announced that the request of Fresenius Medical Care to appoint Prof. Dr. Gregor Zünd as new member of the Supervisory Board of Fresenius Medical Care AG & Co. KGaA has been granted by the responsible court. As requested, the term of office of Professor Zünd is limited until the end of the next ordinary Annual General Meeting in May 2019. The Supervisory Board of Fresenius Medical Care AG & Co. KGaA believes that his extensive experience and outstanding expertise qualify Professor Zünd for this position and will propose the next Annual General Meeting to approve his appointment to the Supervisory Board.

Professor Zünd, 59, is Chief Executive Officer of the University Hospital of Zürich since 2016. As Director of Research and Education he has been member of the hospital’s Executive Board since 2008. In parallel, he has been Managing Director of the Center for Clinical Research and Head of the Surgical Research department at University Hospital Zurich. Until 2001, Professor Zünd was Senior Physician at the Clinic for Cardiovascular Surgery at University Hospital Zurich. He spent several years at Texas Medical Center, Houston, and at Harvard Medical School, Boston. Gregor Zünd is Professor ad personam at the University of Zurich.

The special election became necessary after the previous Chairman of the Supervisory Board of Fresenius Medical Care & Co. KGaA, Dr. Gerd Krick, stepped down from the Supervisory Board at the end of this year’s Annual General Meeting. The Supervisory Board subsequently elected Dr. Dieter Schenk, previously the Deputy Chairman of the Supervisory Board, as Chairman.

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,815 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 325,188 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

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2018 Press release
news-1573 Tue, 16 Oct 2018 19:29:31 +0200 Fresenius Medical Care publishes preliminary results for the third quarter and adjusts targets for fiscal year 2018 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-publishes-preliminary-results-for-the-third-quarter-and-adjusts-targets-for-f/ Anticipated revenue decrease of around 6% on a reported basis and an increase of around 2% on a comparable basis (+3% at constant currency) Press Release

  • Anticipated revenue decrease of around 6% on a reported basis and an increase of around 2% on a comparable basis1 (+3% at constant currency)
  • Net income development affected by
    - Weaker than expected Dialysis Services business
    - Contributions to the campaigns in the U.S. opposing state ballot initiatives
    - Year-to-date adjustments for hyperinflation in Argentina
    - Increased provision for the ongoing FCPA settlement discussion
  • Targets for full year 2018 revised:
    - Revenue growth on a comparable basis1: 2 to 3% (from 5 to 7%)
    - Net income growth on a comparable basis1: 11 to 12% (from 13 to 15%)

Preliminary (pre-close) key figures (IFRS)
 

EUR million Q3 2018 Q3 2017 Growth yoy Growth yoy, cc
Revenue 4,058 4,336 -6% -6%
Revenue on a comp. basis1 4,058 3,966 2% 3%
Operating income (EBIT) 527 609 -13% -20%
EBIT on a comp. basis1 615 589 5% 4%
EBIT adjusted1 615 604 2% 1%
Net income1,2 285 309 -8% -17%
Net income on a comp. basis1,2 364 304 20% 19%
Net income adjusted1,2 310 314 -1% -2%


“The underlying growth trends and business drivers remain intact. While we were able to improve profitability in North America, the growth acceleration in the region did not materialize as fast as anticipated. In addition, the business performance in some emerging countries was muted due to a challenging economic environment. Based on these developments, which are not expected to be fully recovered in the fourth quarter, we adjust our targets for fiscal 2018,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “To protect the access of our patients to dialysis care, we contributed to the opposition to the ballot initiatives in the U.S.”

Revenue

Revenue in the third quarter 2018 is anticipated to decline by around 6% to approx. EUR 4,058 million (a decrease of around 6% at constant currency), mainly driven by the higher comparable base which included the Q3 2017 revenue contribution from Sound Inpatient Physicians (“Sound”) of EUR 253 million as well as the impact from the IFRS 15 implementation. Excluding these two effects, revenue is expected to increase by around 2% on a comparable basis (~3% at constant currency), mainly driven by an increase in treatment volumes in North America. The increase in revenue is anticipated to come in below expectations due to an overall weaker than expected Health Care Services business in North America and the difficult economic environment in certain emerging countries, including currency fluctuations. The lower than expected increase in North America was mainly driven by an unfavorable payor mix as well as lower than expected volumes in the Dialysis Services and Care Coordination businesses.

Operating income (EBIT)

Total operating income (EBIT) is expected to reach approx. EUR 527 million in the third quarter of 2018, a decrease of around 13% (a decrease of around 20% at constant currency). The anticipated strong decrease was mainly attributable to the higher comparable base which included the Q3 2017 EBIT contribution from Sound of EUR 20 million. In addition, the contributions to the opposition to the ballot initiatives in the U.S. of EUR 23 million (not tax effected) in the third quarter affected the operating income growth. We have also increased the provision for the FCPA related charge by EUR 75 million (not tax effected). This increase reflects an understanding with the U.S. Government on the financial aspects of a potential settlement and an update of ongoing legal costs to reach closure. However, significant non-financial matters are still under discussion and must be resolved to the company’s satisfaction for a settlement to occur.

Excluding the effects of Sound, the contributions to opposing the ballot initiatives as well as the FCPA related charge, EBIT is expected to increase by around 5% on a comparable basis (around 4% at constant currency). The assumed lower than expected EBIT increase on a comparable basis was driven by the weaker Dialysis Services business in North America due to higher patient care and supply cost, in particular for home dialysis. The development was also negatively impacted by charges for hyperinflation in Argentina of around EUR 17 million at constant currency (not tax effected), transactional exchange rate losses and higher bad debt associated with the development in certain emerging countries. These developments could not be fully mitigated in the quarter.

Net income

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to decrease by around 8% to approx. EUR 285 million in the third quarter of 2018 (a decrease of around 17% at constant currency). On a comparable basis net income is expected to increase by around 20% to approx. EUR 364 million (around 19% at constant currency). The contributions to the opposition to the ballot initiatives in the U.S., the hyperinflationary adjustment for Argentina and the increase of the provision for the FCPA related charge have not been tax effected.

Outlook 2018

Fresenius Medical Care adjusts its targets for the financial year 2018 as the business development in the third quarter 2018 was below the company’s expectations. The company now expects revenue growth of 2 to 3% at constant currency (previously: 5 to 7%). Net income on a comparable basis is expected to increase by 11 to 12% (previously: 13 to 15%) at constant currency. On an adjusted basis, net income is expected to increase by 2 to 3% (previously: 7 to 9%) at constant currency.

The targets exclude the effect from the planned acquisition of NxStage Medical.

Final Q3 2018 results and conference call

All figures in this press release are still preliminary. The company will publish its Q3 and 9 months 2018 financial results, as scheduled, on October 30, 2018. Fresenius Medical Care will host a conference call to discuss the results of the third quarter on October 30, 2018, at 3:30 p.m. CET / 10:30 a.m. EDT. Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

1 For a detailed reconciliation, please refer to the table at the end of the press release
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,815 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 325,188 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1569 Mon, 08 Oct 2018 00:00:00 +0200 Fresenius Medical Care supports access to hemodiafiltration for UK dialysis patients https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-supports-access-to-hemodiafiltration-for-uk-dialysis-patients/ Fresenius Medical Care supports the recommendation by the United Kingdom’s NICE to facilitate population healthcare management for UK patients with end-stage renal disease. Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, supports the recommendation by the United Kingdom’s National Institute for Health and Care Excellence (NICE) to facilitate population healthcare management for UK patients with end-stage renal disease. In a guideline on renal replacement therapy published on October 3, 2018, NICE, a non-departmental public body of the UK’s Department of Health, advises health and social care professionals to consider hemodiafiltration (HDF) rather than high-flux hemodialysis (HD) if the patient is treated in-center, due to the positive impact on patient outcomes and cost-effectiveness.

High-flux HD is the application of high-flux dialyzers to remove a broad spectrum of small and large uremic toxins in order to contribute towards better management of dialysis patients. HDF adds a convective component to the high-flux HD treatment, making it even more effective in removing larger toxins and further improving patient outcomes.

In order to provide evidence-based guidance, NICE systematically reviewed best available renal replacement therapy studies and conducted an economic evaluation. The assessment identified clear benefits of HDF treatment for both renal disease patients and the national healthcare system, as HDF is not only considered cost-effective but is also expected to decrease mortality rates among patients.

Fresenius Medical Care has a long-standing commitment to make HDF available to patients to achieve the best possible outcomes. The company has developed innovative technologies which automatically maximize substitution rates in HDF and support the application of HighVolumeHDF®. This makes HDF treatments as simple as HD, and allows HDF treatments to be delivered at the same cost as HD in the UK.

Dr. Katarzyna Mazur-Hofsaess, Chief Executive Officer of Fresenius Medical Care for Europe, the Middle East and Africa, said: “The NICE guidelines incorporate the existing evidence base for the benefits of HDF therapy. We are convinced that our HighVolumeHDF® therapy platform provides the easiest way for the user to deliver HDF to patients. Our commitment to make HighVolumeHDF® available to all patients across the UK remains a top priority for us.”
 

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,815 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 325,188 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

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2018 Press release
news-1563 Wed, 19 Sep 2018 00:00:00 +0200 Fresenius Medical Care included for 10th consecutive year in Dow Jones Sustainability Index https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-included-for-10th-consecutive-year-in-dow-jones-sustainability-index/ Fresenius Medical Care has been recognized for the 10th consecutive year as a sustainability leader with inclusion in the Dow Jones Sustainability Index. Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, has been recognized for the 10th consecutive year as a sustainability leader with inclusion in the Dow Jones Sustainability Index (DJSI Europe). The DJSI Europe index represents the top 20 percent of the largest 600 European companies in the S&P Global BMI, based on the international investment company RobecoSAM’s analysis of their economic, environmental and social performance.

This year, Fresenius Medical Care scored particularly highly for its reporting on environmental and social issues as well as its materiality analysis, which identifies issues in the economy, environment and society that may significantly affect a company’s performance. With publication of its first non-financial group report in 2018, Fresenius Medical Care has also established a global sustainability governance structure. This will further improve the coordination and management of sustainability topics across all regions.

Rice Powell, Chief Executive Officer of Fresenius Medical Care and head of the company’s Sustainability Decision Board, said: “Over the past years, we have continuously built up our sustainability efforts, as we are convinced that acting in a responsible and sustainable manner goes hand in hand with our commercial success. Being included in the renowned Dow Jones Sustainability Index for 10 years in a row makes us proud, and confirms that we are on the right track by putting patients first.”

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,815 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 325,188 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

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2018 Press release
news-1490 Tue, 31 Jul 2018 07:00:00 +0200 Fresenius Medical Care continues to grow in the second quarter and confirms outlook for 2018 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-continues-to-grow-in-the-second-quarter-and-confirms-outlook-for-2018/ Healthy organic growth across the board, North American Products business continues strong growth Press Release Financials

  • Healthy organic growth across the board, North American Products business continues strong growth
  • Underlying Care Coordination margin improved
  • Results continue to be impacted by strong currency headwinds
  • Calcimimetics continue to evolve
  • Divestiture of Sound Inpatient Physicians successfully closed
  • NxStage acquisition expected to close in the second half of 2018

Key figures (IFRS)

EUR million Q2 2018 Q2 2017 Growth yoy Growth yoy, cc H1 2018 H1 2017 Growth yoy Growth yoy, cc
Revenue 4,214 4,471 (6%) 2% 8,189 9,019 (9%) 0%
Revenue on a comp. basis1 4,214 4,340 (3%) 5% 8,189 8,749 (6%) 3%
Revenue adjusted1 4,214 4,342 (3%) 5% 8,189 8,651 (5%) 4%
Operating income (EBIT) 1,401 583 140% 162% 1,898 1,235 54% 68%
EBIT on a comp. basis1 568 583 (3%) 4% 1,078 1,235 (13%) (5%)
EBIT adjusted1 568 591 (4%) 2% 1,078 1,144 (6%) 3%
Net income2 994 269 270% 303% 1,273 577 121% 141%
Net income on a comp. basis1,2 308 269 15% 22% 599 577 4% 13%
Net income adjusted1,2 273 274 0% 6% 517 523 (1%) 7%
Basic EPS (EUR) 3.24 0.88 270% 303% 4.15 1.88 121% 141%
EPS on a comp. basis1 1.00 0.88 15% 22% 1.96 1.88 4% 13%
EPS adjusted1 0.89 0.89 0% 6% 1.69 1.71 (1%) 7%

cc = at constant currency, EPS = earnings per share

Rice Powell, Chief Executive Officer of Fresenius Medical Care, stated: “In the second quarter, we have seen solid growth resulting in a strong net income increase of 22 percent at constant currency – excluding the positive impact of the successful and efficient closing of the Sound Inpatient Physicians divestment. On the back of the strong development of our Products business and continued growth of our Services business, we expect growth to further accelerate in the second half of 2018.”

Strong Products growth

Revenue in the second quarter of 2018 was again significantly impacted by foreign currency effects, resulting in a 2% increase at constant currency to EUR 4,214 million (-6% at current rates). Adjusting the second quarter of 2017 for the impact from the IFRS 15 implementation, revenue in the second quarter of 2018 was up by 5% at constant currency. Health Care Services revenue increased by 1% at constant currency to EUR 3,385 million, driven by growth in same market treatments and contributions from acquisitions, partially offset by the effects from the implementation of IFRS 15. Excluding the negative effects from the implementation of IFRS 15 Health Care Service revenue increased by 4% at constant currency. Health Care Products revenue grew by 6% at constant currency to EUR 829 million. The increase was driven by higher sales of hemodialysis products and renal pharmaceuticals. Organic growth for Health Care Services was 3% and for Health Care Products 6%. Dialysis treatments increased by 3%, mainly as a result of growth in same-market treatments.

In the first half of 2018, revenue was stable at constant currency with EUR 8,189 million (-9% at current rates). Excluding the effect from the implementation of IFRS 15 revenue was up by 3% at constant currency. Health Care Services revenue decreased by 1% at constant currency (-11% at current rates) based on a strong comparable first half of 2017 and unfavourably affected by the implementation of IFRS 15 and the VA Agreement. Health Care Products revenue increased by 6% at constant currency (flat at current rates).

Significant contribution from divestitures of Care Coordination activities

Total operating income (EBIT) reached EUR 1,401 million, an increase of 162% at constant currency (+140% at current rates) in the second quarter of 2018. The strongest contributor was the gain related to the divestitures of Care Coordination activities. The significant contribution of EUR 833 million also includes the positive effect of gains from currency translation adjustments. Adjusting for the gain as well as the prior year impact from the VA Agreement, EBIT grew by 2% at constant currency (-4% at current rates) with an EBIT margin of 13.5%.

In the first half of 2018, EBIT increased by 68% at constant currency to EUR 1,898 million (+54% at current rates). Adjusted for the effects described above, EBIT increased by 3% at constant currency (-6% at current rates) and the EBIT margin was 13.2%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was exceptionally strong in the second quarter of 2018 with EUR 994 million (+270% at current rates), mainly driven by the gain related to the divestitures of Care Coordination activities. Excluding the gain related to the divestitures of Care Coordination activities, the increase in net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was 22% at constant currency (+15% at current rates). Further adjusting for the prior year impact from the VA Agreement and the positive effect from the U.S. Tax Reform, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA grew by 6% on a constant currency basis to EUR 273 million (flat at current rates). Based on the number of approximately 306.4 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) amounted to EUR 3.24 (+270% at current rates). On a comparable basis the company generated an EPS of EUR 1.00, up by 22% at constant currency and 15% at current rates. On an adjusted basis EPS increased by 6% to EUR 0.89 at constant currency (flat at current rates).

For the first half of 2018, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 141% at constant currency (+121% at current rates) to EUR 1,273 million, mainly driven by the gain related to the divestitures of Care Coordination activities. Adjusted for this effect, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA reached EUR 599 million, an increase of 13% at constant currency (+4% at current rates). Further adjusting for the prior year impact from the VA Agreement and the positive effect from the U.S. Tax Reform, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA reached EUR 517 million in the first half of 2018, an increase of 7% at constant currency (-1% at current rates).

Organic growth across all Reporting Segments

North America revenue, which represents 71% of total revenue in the second quarter of 2018, was stable at constant currency and reached EUR 2,971 million (-8% at current rates). Excluding the effect from the implementation of IFRS 15 revenue was up by 4% at constant currency. Organic growth was 3%.

Dialysis Care revenue increased by 4% to EUR 2,232 million at constant currency (-4% at current rates). The growth at constant currency was mainly driven by an increase in organic revenue per treatment, same market treatment growth and contributions from acquisitions, to some extent diluted by the implementation of IFRS 15 and the VA Agreement in the prior year. Adjusted for the implementation of IFRS 15, Dialysis Care revenue increased by 7% at constant currency. Organic revenue per treatment increased by 4%, same-market treatments grew by 2% and acquisitions contributed 1%. At constant currency, Care Coordination revenue decreased by 18% (-24% at current rates), driven by the shift of calcimimetic drugs into the clinical environment and the implementation of IFRS 15, partially offset by improved performance in certain services prior to divestiture. Excluding the effect from the implementation of IFRS 15 Care Coordination revenue decreased by 10% at constant currency.

In the U.S., the average revenue per treatment, adjusted for the implementation of IFRS 15 and excluding the 2017 impact of the VA Agreement, increased by USD 13 from USD 341 to USD 354. The increase was mainly driven by the introduction of calcimimetic drugs in the clinical environment, which is still evolving. The increase was partially offset by lower revenue from commercial payors, as expected, and higher implicit price concessions (IFRS 15).

Cost per treatment in the U.S., adjusted for the implementation of IFRS 15, increased by USD 14 from USD 272 to USD 286. This development was largely a result of the introduction of calcimimetic drugs in the clinical environment as well as increased property and other occupancy related costs, partially offset by lower costs for health care supplies.

At constant currency, Health Care Products revenue showed a strong increase of 10% to EUR 210 million due to higher sales of renal pharmaceuticals, machines and hemodialysis concentrates. Lower external sales in peritoneal dialysis products affected the overall positive development.

Total operating income for the North America segment was EUR 1,286 million in the second quarter of 2018, an increase of 200% at constant currency (+174% at current rates). This increase was mainly driven by the gain related to divestitures of Care Coordination activities. Adjusted for this impact and the 2017 effects from the VA Agreement, operating income (EBIT) was EUR 453 million compared to EUR 471 million in the second quarter of 2017. The adjusted operating income margin was stable at 15.2%.

For the first half of 2018, North America revenue decreased by 3% at constant currency to EUR 5,746 million (-13% at current rates). Adjusted for the implementation of IFRS 15 (EUR 270 million), revenue increased by 1% at constant currency (-9% at current rates). Mainly driven by the gain related to divestitures of Care Coordination activities, operating income went up by 83% at constant currency (+66% at current rates) to EUR 1,648 million in the first half of 2018.

As of the end of June 2018, the company was treating 199,527 patients (+3%) at its 2,439 clinics (+4%) in North America. Dialysis treatments increased by 3%.

EMEA revenue increased by 5% at constant currency (+2% at current rates) to EUR 652 million in the second quarter of 2018, mainly driven by the positive development in Health Care Services revenue and Health Care Products revenue, which increased by 5% and 4%, respectively, at constant currency. The increase in Health Care Services revenue was driven by same-market treatment growth and acquisitions. Dialysis Products revenue grew by 5% at constant currency (+2% at current rates) to EUR 319 million, due to higher sales of dialyzers, machines, bloodlines, products for acute care treatments and renal pharmaceuticals.

Non-dialysis Products revenue decreased by 8% at constant currency (-8% at current rates) to EUR 18 million, primarily due to slightly lower sales volumes.

Operating income was EUR 105 million in the second quarter of 2018. The operating income margin decreased from 17.6% to 16.1%, mainly due to unfavorable impacts from lower income from equity method investees, higher personnel costs in certain countries and an increase in bad debt expenses.

For the first half of 2018, EMEA revenue increased by 5% at constant currency to EUR 1,288 million (+3% at current rates), while operating income of EUR 214 million was 5% below last year´s level at constant currency (-6% at current rates).

As of the end of June 2018, the company had 63,589 patients (+4%) being treated at 758 clinics (+4%) in the EMEA region. Dialysis treatments increased by 4%.

Asia-Pacific revenue grew by 7% at constant currency to EUR 422 million (+1% at current rates) in the second quarter of 2018. Health Care Services revenue in the region increased by 7% at constant currency to EUR 191 million (flat at current rates). Care Coordination activities contributed EUR 49 million (+32% at constant currency, +24% at current rates) to Health Care Services revenue. This strong Care Coordination growth in Asia Pacific was mainly related to acquisitions and a strong organic revenue growth. Health Care Products showed again a solid business performance, growing 6% at constant currency to revenues of EUR 231 million (+2% at current rates). This growth was mainly driven by higher sales of hemodialysis products, partially offset by lower sales of products for acute care treatments. Operating income reached the same level as the previous year’s quarter (EUR 78 million). The operating income margin decreased slightly to 18.4%, driven by unfavorable foreign currency impacts and increased costs for the business growth, mainly in China.

For the first half of 2018, Asia-Pacific revenue increased by 10% at constant currency to EUR 814 million. Operating income decreased by 1% at constant currency with EUR 152 million (-5% at current rates).

As of the end of June 2018, the company had 30,578 patients (+2%) being treated at 385 clinics in Asia-Pacific. Dialysis treatments increased by 2%.

Latin America delivered revenue of EUR 164 million in the second quarter of 2018, an improvement of 11% at constant currency (-10% at current rates). This growth was mainly due to a strong growth in Health Care Services (+15% at constant currency) due to an increase in organic revenue per treatment, acquisitions and growth in same market treatments. Health Care Products revenue in Latin America increased by 2% at constant currency to EUR 46 million, due to higher sales of machines and peritoneal dialysis products and negatively affected by lower sales of dialyzers. With an operating income of EUR 11 million the segment generated an operating income on previous year’s level. The operating income margin remained at 6.8%.

For the first half of 2018, Latin America revenue increased by 14% at constant currency to EUR 334 million (-7% at current rates). Operating income was EUR 25 million, an increase of 5% at constant currency (-6% at current rates).

As of the end of June 2018, the company was treating 31,494 patients (+4%) at 233 clinics in Latin America (+1%). Dialysis treatments increased by 4%.

Net interest expense was EUR 84 million compared to EUR 95 million in the second quarter of 2017, a decrease of 6% at constant currency (-11% at current rates). The decrease was driven by a replacement of high interest-bearing senior notes by debt instruments at lower rates as well as a decreased debt level. Income tax expense was EUR 262 million for the second quarter of 2018, which translates into an effective tax rate of 19.9%, compared to last year’s Q2 with a tax rate of 30.8%. The strong reduction was largely driven by the U.S. Tax Reform and the gain related to divestitures of Care Coordination activities.

Strong cash flow generation

In the second quarter of 2018, the company generated EUR 656 million of operating cash flow, compared to EUR 883 million provided by operating activities in last year’s second quarter. This decrease was mainly driven by increased accounts receivable related to the addition of calcimimetics into the Medicare ESRD payment bundle and unfavorable foreign currency effects. The number of days sales outstanding (DSOs) decreased sequentially by three days compared with Q1 2018 to reach 82 days. Free cash flow (Net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR 429 million for the three months ended June 30, 2018 compared to EUR 690 million for the same period of 2017. Free cash flow in percent of revenue was 10.2% and 15.4% for the three months ended June 2018 and 2017, respectively.

Sound Physicians divestiture successfully closed

On June 28, Fresenius Medical Care announced the closing of the divestiture of Sound Inpatient Physicians Holdings, LLC to an investment consortium led by Summit Partners. In the second half of 2017, the Sound Physicians business generated revenue of EUR 559 million and a net income of EUR 38 million. The 2017 basis has been adjusted accordingly for measuring the performance against the 2018 outlook.

Closing of NxStage Medical acquisition expected for second half 2018

In August 2017, Fresenius Medical Care signed an agreement with NxStage Medical, a U.S.-based medical technology and services company, to acquire all outstanding shares of NxStage Medical through a merger. The merger, which has been approved by NxStage’s board, NxStage stockholders and authorities in Germany, is still subject to regulatory approval by the Federal Trade Commission under the Hart-Scott-Rodino Act. Fresenius Medical Care has exercised its contractual right under the merger agreement to extend the original closing deadline by 90 days from August 7, 2018 to November 5, 2018. Fresenius Medical Care expects to close the transaction in 2018.

Employees

As of June 30, 2018, Fresenius Medical Care had 111,263 employees (full-time equivalents) worldwide, compared to 112,163 employees at the end of June 2017. This decrease was mainly attributable to divestitures of certain Care Coordination activities.

Outlook 2018

The company expects revenue3 growth between 5% and 7% at constant currency. Net income on a comparable basis4 is expected to increase by 13% to 15% at constant currency and on an adjusted basis4,5 to increase by 7% to 9% at constant currency.

The targets exclude the effect from the planned acquisition of NxStage Medical and the gain (loss) related to divestitures of Care Coordination activities.

Conference call

Fresenius Medical Care will host a conference call to discuss the results of the second quarter today at 3:30 p.m. CEDT / 9:30 a.m. EDT. Details will be available in the Investors/Events section. A replay will be available shortly after the call.

1For a detailed reconciliation, please refer to the table at the end of the press release
2Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
32017 adjusted for the effect of IFRS 15 implementation and the contribution of Sound Physicians in H2 2017
4Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA, adjusted for the contribution from Sound Physicians in H2 2017
5VA Agreement, Natural Disaster Costs, FCPA related charge, U.S. Tax Reform

Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the second quarter of 2018.

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,815 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 325,188 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1486 Mon, 30 Jul 2018 11:30:00 +0200 Fresenius Medical Care achieves preclinical milestone in its regenerative medicine program for chronic kidney disease https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-achieves-preclinical-milestone-in-its-regenerative-medicine-program-for-chron/ Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, announced today that its subsidiary Unicyte AG has achieved a key preclinical milestone in its regenerative medicine program for chronic kidney disease. The company was able to confirm a disease modifying potential for its proprietary nano-Extracellular Vesicles (“nEVs” are stem cell-derived particles that support communication between cells) in a second preclinical model of chronic kidney disease.

When administered to mice with fast progressing kidney disease, Unicyte’s nEVs prevented renal fibrosis, a hallmark of chronic kidney disease. In particular, nEVs significantly reduced interstitial fibrosis and tubular necrosis while also inhibiting infiltration of various cells. This resulted in near-to-normal recovery of kidney function. The study conducted in collaboration with Prof. Giovanni Camussi of the University of Turin, Italy, has been accepted for publication in the peer-reviewed journal Frontiers of Immunology (https://doi.org/10.3389/fimmu.2018.01639).

These new results support previous findings in a preclinical model of slowly progressing kidney disease (diabetic nephropathy), a major pathology that often leads to end-stage renal disease. Combined results of these studies demonstrate the efficacy and the underlying mechanism of action of nEVs in preventing renal fibrosis and subsequent progression to end-stage renal disease. Unicyte will continue the preclinical and clinical development of its proprietary nEVs for treatment of chronic and acute kidney diseases.

Dr. Olaf Schermeier, Fresenius Medical Care’s CEO for Global Research and Development, said: “We are very excited about the progress we have made with our research and development activities over the last 30 months since we have established Unicyte. Based on these achievements, Unicyte will continue to explore the potential of nEVs for the treatment of patients in pre-dialysis stages of chronic kidney disease.”

Prof. Giovanni Camussi, Professor Emeritus at the University of Turin and Member of Unicyte’s Scientific Advisory Board, said, “nEVs are a promising regenerative medicine technology platform. Our aim is to develop new and better treatment options for severely and chronically ill patients over time. Achieving this preclinical milestone represents an important step towards testing nEVs in the clinical setting.”

With multiple therapeutic programs at the clinical and preclinical stage, Unicyte has established a broad pipeline in kidney and liver diseases, diabetes and oncology. The company is seeking strategic partnerships for its non-renal programs.

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Unicyte AG is a regenerative medicine company with a focus on kidney & liver disorders, diabetes and oncology. Unicyte evolved from a long-term research collaboration of Italy’s University of Turin and Fresenius Medical Care. Unicyte is headquarted in Oberdorf NW, Switzerland, and is an independent affiliate of Fresenius Medical Care, the world's largest provider of products and services for individuals with renal diseases.

For more information visit the company’s website at www.unicyte.ch.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1480 Mon, 16 Jul 2018 11:00:00 +0200 Fresenius Medical Care Ventures invests in Israeli medical device company https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-ventures-invests-in-israeli-medical-device-company/ Fresenius Medical Care Ventures, the venture capital unit of Fresenius Medical Care, announced today that it has invested $2 million in the Series B financing round for Vectorious Medical Technologies. Press Release

Fresenius Medical Care Ventures, the venture capital unit of Fresenius Medical Care, announced today that it has invested $2 million in the Series B financing round for Vectorious Medical Technologies (“Vectorious”). The Israeli medical device company raised more than $10 million in this financing round, including a recent grant from the European Union’s Horizon 2020 flagship research and development program.

Vectorious has developed the V-LAP, a first of its kind in-heart microcomputer for left-atrial pressure monitoring. Data from this device is transmitted wirelessly to clinicians, enabling heart failure patients to be managed effectively before their disease advances.

The Series B financing will accelerate Vectorious’ ongoing R&D programs, as well as CE Mark and FDA regulatory approval initiatives.

“This first investment we have made outside of the United States demonstrates our confidence in the great innovative potential for medical products in Israel. Based on the pioneering nature of Vectorious’ technology for managing chronic heart failure patients’ care, we see this as a compelling early stage investment opportunity with tremendous potential,” said Florian Jehle, Managing Director of Fresenius Medical Care Ventures and Senior Vice President Global R&D at Fresenius Medical Care.

 

About Fresenius Medical Care Ventures GmbH

Fresenius Medical Care Ventures was established in 2016 to invest in start-ups and early-stage companies in the healthcare sector. Its investments are targeted to support Fresenius Medical Care’s corporate strategy of growing continuously in the company’s core dialysis business, expanding into new business areas and improving the health of all Fresenius patients. Fresenius Medical Care Ventures complements other corporate innovation initiatives by focusing on early-stage external innovation. For more information, visit www.fmcv.com.

About Vectorious Medical Technologies

Vectorious Medical Technologies has developed an implantable microcomputer-based system that enables optimal management of heart failure patients using direct, daily left-atrial pressure (LAP) measurements. The system’s technological infrastructure is based on use of the first and only sensory implant in the world that is miniature, battery-less and wireless, and that can communicate accurate readings from the heart. The company was founded in 2011 at the RadBioMed incubator by Oren Goldshtein, Dr. Eyal Orion and Roni Weinstein. Vectorious has 15 employees at its offices in Ramat Hahayal in Tel Aviv and at the Cleveland Clinic.

...

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1477 Wed, 04 Jul 2018 00:00:00 +0200 Fresenius Medical Care successfully places €500 million Euro notes https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-successfully-places-eur500-million-euro-notes/ Fresenius Medical Care today successfully placed notes with an aggregate principal amount of €500 million. If you are not redirected automatically, click here

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2018 Press release
news-1435 Thu, 28 Jun 2018 10:18:00 +0200 Fresenius Medical Care completes divestment of Sound Inpatient Physicians Holdings https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-completes-divestment-of-sound-inpatient-physicians-holdings/ Fresenius Medical Care today announced the closing of the divestiture of Sound Inpatient Physicians Holdings, LLC (Sound) to an investment consortium led by Summit Partners as of June 28, 2018 Pressrelease

Fresenius Medical Care, the world’s largest provider of dialysis products and services, today announced the closing of the divestiture of Sound Inpatient Physicians Holdings, LLC (Sound) to an investment consortium led by Summit Partners as of June 28, 2018. The total transaction proceeds are $2.15 billion (EUR 1.85 billion1).

The divestment of Sound is aligned with Fresenius Medical Care’s goal of further sharpening the profile of the company’s Care Coordination portfolio. The transaction is expected to generate a positive effect on net income2 for Fresenius Medical Care of around USD 752 million (EUR 648 million1). This effect includes the half year impact from the increase in valuation of Sound´s share based payment program caused by the divestment of Sound.

The financial targets for 2018 and 2020 do not include the effects of this divestiture. The divestment reduces on a constant currency basis Fresenius Medical Care´s 2018 revenue expectations by around EUR 650 million and net income2 by around EUR 40 million. The growth rates indicated in the financial targets for 2018 will be achieved on a comparable basis4 following the divestiture of Sound.

1 EUR/USD 1.16
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
3 Based on the company´s latest available information
4 On a pro-forma basis revenue for Sound in H2 2017 was around EUR 560 million and net income was around EUR 40 million

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

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2018 Press release
news-1429 Mon, 11 Jun 2018 00:00:00 +0200 Fresenius Medical Care and Humacyte announce strategic global partnership supported by a $150M equity investment https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-and-humacyte-announce-strategic-global-partnership-supported-by-a-150m-equit/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, and Humacyte, Inc., a medical research, discovery and development company, today announced a strategic, global partnership and a $150M USD equity investment. Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, and Humacyte, Inc., a medical research, discovery and development company, today announced a strategic, global partnership and a $150M USD equity investment. This agreement has the potential to make Humacyte’s investigational human acellular vessel, HUMACYL®, available to more patients worldwide following approval of the product. HUMACYL is currently being investigated for vascular access for hemodialysis and may prove more effective than current synthetic grafts and fistula. Under the terms of the agreement, Fresenius Medical Care will obtain the exclusive global rights to commercialize HUMACYL.

Fresenius Medical Care will be responsible for the marketing, sales and distribution of HUMACYL following approval by the relevant health authorities. In addition, Fresenius Medical Care will make a $150M USD equity investment in Humacyte to gain a 19% fully diluted ownership stake in the company. With the investment, Fresenius Medical Care will have the opportunity to bring transformative clinical innovation in the form of Humacyte’s bioengineered human acellular vessels to the worldwide end stage renal disease (ESRD) patient population following product approval. The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and is expected to close in July 2018.

“By partnering with Humacyte, Fresenius Medical Care has an opportunity to offer a dialysis vascular access option with the potential for significant clinical efficacy and safety improvements, including the potential to minimize catheter contact time to the benefit of our patients,” said Franklin Maddux, MD, Chief Medical Officer for Fresenius Medical Care North America. “Our exclusive rights to distribute this innovative technology to dialysis patients worldwide may have significant benefits not only to patients, but health systems as well. With the potential for fewer anticipated complications and interventions compared to synthetic grafts, we may see increased safety for patients and reduced medical and economic burdens to the healthcare system.”

The current vascular access modalities necessary to deliver dialysis treatment include fistulas, grafts and central venous catheters. All three options have limitations. Half of fistulas fail and do not mature in patients, delaying vascular access for dialysis treatment. In the meantime, many patients need a central venous catheter, which significantly increases the risk of infection. Humacyte has developed a novel human tissue-based investigational product, HUMACYL, for patients with ESRD requiring hemodialysis. Compared to an arteriovenous fistula, HUMACYL can be available for use in hemodialysis within weeks and may have an overall higher rate of maturation. It also may offer a more durable, biologic alternative to synthetic grafts.

“This is a transformational milestone for Humacyte, giving us the world’s strongest partner to help bring our product to more patients globally,” said Carrie Cox, CEO and Chairman of Humacyte, Inc. “Our partnership will allow Humacyte to focus on advancing the potential for HUMACYL as a substantial breakthrough in the science of regenerative medicine, and to continue our development of an exciting future pipeline.”

Humacyte’s bioengineered blood vessel is currently in Phase III pivotal trials in the U.S. and Europe, and the company plans to seek regulatory approval in both regions upon completion of the trials.

___ 

  

About Fresenius Medical Care

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

 

About Humacyte

Humacyte, Inc., a privately held company founded by Dr. Laura E. Niklason, M.D., Ph.D., in 2004, is a medical research, discovery and development company with clinical and pre-clinical stage investigational products. Humacyte is primarily focused on developing and commercializing a proprietary novel technology based on human tissue-based products for key applications in regenerative medicine and vascular surgery. The company uses its innovative, proprietary platform technology to engineer human, extracellular matrix-based tissues that can be shaped into tubes, sheets, or particulate conformations, with properties similar to native tissues. These are being developed for potential use in many specific applications, with the goal to significantly improve treatment outcomes for many patients, including those with vascular disease and those requiring hemodialysis. The company’s proprietary technologies are designed to create off-the-shelf products that, once approved, can be utilized in any patient.

The company website is www.humacyte.com.

  

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, risks and uncertainties in research and development and the regulatory approval process; failure to satisfy the conditions to the consummation of the transaction, including the receipt of regulatory approval; regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Without prejudice to its obligations under capital market laws, neither Fresenius Medical Care AG & Co. KGaA nor Humacyte, Inc. undertakes any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1424 Thu, 17 May 2018 00:00:00 +0200 Fresenius Medical Care forecasts continued strong growth – Annual General Meeting approves 21st straight dividend increase https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-forecasts-continued-strong-growth-annual-general-meeting-approves-21st-stra/ Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, expects continued strong growth. At the Annual General Meeting in Frankfurt today, CEO Rice Powell explained the company's growth strategy for the coming years: “We will continue to expand our business with services and products for dialysis, and will continue to grow,” Powell said in his speech to the shareholders. “The basis for this is our international network of dialysis centers, our comprehensive knowledge in dialysis, and focusing our Care Coordination portfolio. We are well positioned to respond to the current and future changes in health care systems: In fact, we can actively shape these systems! This helps our patients, because we can provide them with comprehensive care. And in turn, helping our patients is the key to our business success.”

A large shareholder majority of 88.27 percent approved a 10 percent increase in the dividend, from €0.96 to €1.06, the company’s 21st consecutive dividend increase. Shareholder majorities of 99.23 and 95.46 percent, respectively, approved the actions of the Management and Supervisory Boards in 2017.

At the Annual General Meeting, 80.46 percent of the subscribed capital was represented.

Dr. Gerd Krick, Chairman of the Supervisory Board of Fresenius Medical Care AG & Co. KGaA, announced that he will resign from the Supervisory Board, effective at the meeting’s end. He will maintain his position on the Supervisory Board of the General Partner, Fresenius Medical Care Management AG.

Dr. Krick had been Chief Executive Officer of Fresenius Medical Care from 1996, when the company was founded, to 1998, laying the foundation for its global success. In 1998, he resigned from his CEO position and became Chairman of the Supervisory Board of Fresenius Medical Care. The Supervisory Board and Management Board thank Dr. Krick for his tremendous efforts to date and many years of service to the benefit of the company.

The Supervisory Board has appointed Dr. Dieter Schenk, Vice Chairman of the Supervisory Board of Fresenius Medical Care AG & Co. KGaA, as the new Chairman. A new member of the Supervisory Board will be appointed in due course and proposed for election at the next Annual General Meeting, which is expected to take place on May 16, 2019.

Press photos
 

Rice Powell

Rice Powell during his speech at the Annual General Meeting

Fresenius Medical Care flags

Annual General Meeting in Frankfurt

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1421 Thu, 03 May 2018 00:00:00 +0200 Fresenius Medical Care remains on track for another record year after solid first quarter 2018 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-remains-on-track-for-another-record-year-after-solid-first-quarter-2018/ Revenue in the first quarter 2018 was significantly impacted by a 12% negative impact resulting from foreign currency translation, declining 1% at constant currency to EUR 3,976 million. Press Release

  • Revenue and net income growth in the first quarter impacted by significant currency headwind
  • Growth delivered by Products business and International segments
  • On track to achieve net income growth target
  • Expected revenue growth softened due to reduced dosing of calcimimetic drugs in the United States
  • Divestiture of Sound Inpatient Physicians to further focus U.S. Care Coordination activities

 

Key figures (IFRS)1

EUR million Q1 2018 Q1 2017 growth growth cc
Revenue
Revenue adjusted
Revenue adjusted and excluding special items
3,976
3,976
3,976
4,548
4,409
4,309
(13%)
(10%)
(8%)
(1%)
2%
4%
Operating income (EBIT)
Operating income (EBIT) adjusted
Operating income (EBIT) adjusted and excl. special items
497
510
510
651
651
552
(24%)
(22%)
(8%)
(15%)
(13%)
3%
Net income2
Net income adjusted
Net income adjusted and excluding special items
279
292
244
308
308
249
(10%)
(5%)
(2%)
0%
5%
8%
Basic earnings per share (in EUR) 0.91 1.01 (10%) 0%


“On the back of a solid first quarter, which showed healthy organic growth in our businesses, we are heading towards another record year in our company’s history. While managing the shift of the calcimimetic drugs into our clinical operations in the United States, we achieved good organic revenue growth in our Dialysis Services business and strong organic revenue growth in our Products business. This provides a solid basis to deliver on our growth targets for this year. With the planned sale of Sound Inpatient Physicians we have narrowed the focus of our Care Coordination strategy in the U.S. on areas that provide the highest contribution and the best outcomes for our patients,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “I am proud to announce that we have just proven once again our commitment to patients. We have received the highest quality rankings in the industry from the U.S. Centers for Medicare and Medicaid Services last week.”

 

Currency headwind impacts revenue and earnings, healthy organic growth continues

Revenue in the first quarter 2018 was significantly impacted by a 12% negative impact resulting from foreign currency translation, declining 1% at constant currency to EUR 3,976 million. Adjusting Q1 2017 for the prior year impact from the recognition of revenue related to the agreement with the U.S. Departments of Veterans Affairs and Justice (VA Agreement) and for the IFRS 15 implementation, revenue growth in the first quarter 2018 was 4% at constant currency. Health Care Services revenue declined by 3% at constant currency (EUR 3,209 million), driven by the effect of the implementation of IFRS 15. Health Care Products revenue increased by 6% at constant currency to EUR 767 million. Organic growth for Health Care Services was at 2%, and for the Health Care Products business at 6%. Dialysis treatments increased by 3% as a result of growth in same-market treatments (2%) and contributions from acquisitions (1%).

Total operating income (EBIT) reached EUR 497 million (margin of 12.5%, 180 basis points below the level of last year). This development was strongly impacted by the VA Agreement and the impact from the initial increase in valuation of Sound Physicians’ share based payment program caused by the sale of Sound Physician (initial Sound valuation impact). Adjusting for the revenue impact from the implementation of IFRS 15 and excluding the VA Agreement as well as the initial Sound valuation impact, EBIT grew by 3% at constant currency and EBIT margin was stable at 12.8%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA remained strong with EUR 279 million, a stable development at constant currency. Adjusted for the negative impact of the initial Sound valuation impact net income grew by 5% on a constant currency basis (EUR 292 million). Excluding all special items – namely the VA Agreement in Q1 2017 and the positive effect from the U.S. Tax Reform in Q1 2018 as well as the initial Sound valuation impact, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 8% at constant currency.

Based on the number of approximately 306.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) amounted to EUR 0.91, compared to EUR 1.01 for the first quarter of 2017.
 

Development of Reporting Segments

North America revenue, which corresponds to 70% of total revenue, was down by 5% at constant currency to EUR 2,774 million.

Dialysis Care revenue decreased by 16% to EUR 2,075 million, including a 13% negative impact resulting from foreign currency translation. At constant currency, Dialysis Care revenue decreased by 3%, mainly due to the implementation of IFRS 15 (EUR 88 million) and the prior-year impact from the VA Agreement (EUR 100 million). Excluding the 2017 effect from the VA Agreement and the 2017 effect from the implementation of IFRS 15, Dialysis Care revenue increased by 5% at constant currency. Same-market treatments grew by 2%, organic revenue per treatment by 2% and acquisitions contributed 1%. At constant currency, Care Coordination revenue decreased by 14%, driven by the shift of calcimimetic drugs into the clinical environment, the implementation of IFRS 15 and the impact from the Shiel Laboratories divestiture in Q4 2017.

As of the end of March 2018, the company was treating 197,339 patients at its 2,419 clinics in North America. Both numbers increased by 4%, while dialysis treatments increased by 3%.

 

Key figures North America (IFRS)

EUR million Q1 2018 Q1 2017 growth growth cc
Revenue
Revenue adjusted
Revenue adjusted and excluding special items
2,774
2,774
2,774
3,375
3,236
3,136
(18%)
(14%)
(12%)
(5%)
(1%)
2%
Operating income (EBIT)
Operating income (EBIT) adjusted
Operating income (EBIT) adjusted and excl. special items
362
375
375
526
526
427
(31%)
(29%)
(12%)
(21%)
(19%)
0%

 

In the U.S., the average revenue per treatment, adjusted for the implementation of IFRS 15 and excluding the 2017 impact of the VA Agreement, the average revenue per treatment increased by USD 6 from USD 342 to USD 348. The increase was mainly driven by the announced initial introduction of calcimimetic drugs in the clinical environment, which is still in an early conversion stage. Higher implicit price concessions (IFRS 15) and, as previously indicated, lower revenue from commercial payors mitigated this effect.

Cost per treatment in the U.S., adjusted for the implementation of IFRS 15, increased to USD 288 (from USD 276). This development was largely a result of the announced initial introduction of calcimimetic drugs in the clinical environment, which is still in an early conversion stage, higher personnel expense, as well as increased property and other occupancy related costs and increased costs for medical supplies partially offset by lower costs for health care supplies.

At constant currency, Health Care Products revenue increased by 1% due to higher sales of renal pharmaceuticals, peritoneal dialysis products, hemodialysis solutions and concentrates, partially offset by lower sales of machines and dialyzers.

The total operating income of the North America segment was EUR 362 million (-31%), (-21% at constant currency), an operating income margin of 13.1%. Adjusted for the initial Sound valuation impact and the 2017 effects from the VA Agreement, operating income (EBIT) was EUR 375 million compared to EUR 427 million in the first quarter 2017. The respective operating income margin was 13.5% compared to 13.6% in the first quarter of 2017.

EMEA revenue increased by 6% at constant currency to EUR 636 million, mainly driven by positive business development in Health Care Services revenue and Health Care Products revenue, which both increased by 6% at constant currency. The increase in Health Care Services revenue was driven by acquisitions, same-market treatment growth and an increase in dialysis days. Dialysis Products revenue grew by 7% at constant currency to EUR 302 million, due to higher sales of products for acute care treatments, machines, peritoneal dialysis products and renal pharmaceuticals.

Non-dialysis Products revenue decreased by 6% to EUR 20 million, primarily due to lower sales of acute cardiopulmonary products. There was virtually no impact from foreign currency translation effects. Operating income was EUR 109 million. The operating income margin decreased from 18.7% to 17.1%, mainly due to unfavorable impacts from currency effects partially offset by the impact of one additional dialysis day.

As of the end of March 2018, the company had 63,114 patients (5% increase) being treated at 754 clinics (4% increase) in the EMEA region. Dialysis treatments increased by 5%.

Asia-Pacific revenue grew by 14% at constant currency to EUR 392 million. In the region, Health Care Services revenue increased 9% (20% at constant currency) to EUR 184 million. Care Coordination activities contributed EUR 46 million to Health Care Services revenue. With growth of 8% in constant currency to EUR 208 million, the Health Care Products business showed a solid sales performance, mainly driven by higher sales of chronic hemodialysis products and products for acute care treatments. Operating income reached EUR 74 million (Q1 2017: EUR 82 million). The operating income margin decreased to 19.0% in Q1 2018 (Q1 2017: 21.7%). This was primarily driven by foreign currency transaction effects and delayed product sales.

As of the end of March 2018, the company had 30,194 patients (2% increase) being treated at 385 clinics in Asia-Pacific. Dialysis treatments increased by 2%, impacted by same market treatment growth of 4% partially offset by the effect of sold or closed clinics.

Latin America delivered revenue of EUR 170 million, a significant improvement of 17% at constant currency. This growth was mainly driven by an increase in organic revenue per treatment. Health Care Products revenue grew by 25% at constant currency based on higher sales of dialyzers, machines, products for acute treatments and peritoneal dialysis products. With an operating income of EUR 14 million the segment generated an operating income on previous year’s level. Operating income margin increased slightly to 8.3% in Q1 2018 (Q1 2017: 8.1%).

As of the end of March 2018, the company was treating 31,606 patients (5% increase) at 232 clinics in Latin America. Dialysis treatments increased by 4%.

Net interest expense was EUR 80 million compared to EUR 92 million in the first quarter of 2017, a decrease of 14% (5% at constant currency). The decrease was driven by the lower leverage level and a repayment of high interest-bearing senior notes. Income tax expense was EUR 87 million for the first quarter of 2018, which translates into an effective tax rate of 20.9%, compared to last year’s Q1 with a tax rate of 32.5%. The strong reduction was largely driven by the U.S. Tax Reform.

 

Cash flow with normalized development

In the first quarter of 2018, the company used EUR 45 million in net cash from operating activities, compared to EUR 170 million provided by operating activities in last year’s Q1. The decrease in net cash provided by operating activities was largely driven by the positive impact from the 2017 cash inflow related to the VA Agreement, a higher impact from seasonality in invoicing and increased inventory levels, partially offset by a positive impact from lower income tax payments. The number of days sales outstanding (DSOs) increased sequentially by 10 days compared with Q4 2017 to reach 85 days driven by the above mentioned seasonality in invoicing. Free cash flow (Net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR (263 million) and EUR (25 million) for the three months ended March 31, 2018 and March 31, 2017, respectively. Free cash flow in percent of revenue was (6.6%) and (0.6%) for the three months ended 2018 and 2017, respectively.

Focusing the profile in U.S. Care Coordination portfolio

On April 21, Fresenius Medical Care announced to divest its controlling interest in Sound Inpatient Physicians to an investment consortium for total transaction proceeds of USD 2.15 billion (EUR 1.76 billion3). The divestment is expected to generate a pre-tax book gain of approximately EUR 800 million3,4. Closing of the transaction is subject to regulatory approvals and anticipated late in 2018.

Employees

As of March 31, 2018, Fresenius Medical Care had 114,831 employees (full-time equivalents) worldwide, compared to 110,530 employees at the end of March 2017. This increase was mainly attributable to our continued organic growth and acquisitions.

Outlook 2018

The company expects revenue5 growth between 5% and 7% at constant currency. Adjusted net income6 is expected to increase by 13% to 15% at constant currency and excluding special items7 to increase by 7% to 9%.

The targets exclude effects from major transactions such as the planned acquisition of NxStage Medical and the planned divestiture of Sound Physicians.
 

Conference call

Fresenius Medical Care will host a conference call to discuss the results of the first quarter today at 3:30 p.m. CEDT / 9:30 a.m. EDT. Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

 

Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the first quarter 2018.

 

Financial Tables

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1 For a detailed reconciliation, please refer to the table at the end of the press release
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
3 EUR/USD 1.22
4 Based on the company’s latest available valuation of the North American operating segment
5 2017 adjusted for the effect of IFRS 15 implementation
6 Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA, adjusted for the Sound valuation impact
7 VA Agreement, Natural Disaster Costs, FCPA related charge, U.S. Tax Reform

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

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Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1419 Wed, 02 May 2018 00:00:00 +0200 Fresenius Medical Care announces leadership change in EMEA https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-announces-leadership-change-in-emea/ Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, today announced a leadership change in its EMEA (Europe, Middle East and Africa) region. Effective 1 September 2018, Ms. Katarzyna Mazur-Hofsäss, Ph.D., will assume the Management Board position in charge of EMEA. She follows Dominik Wehner, who decided to step down from his position for personal reasons, effective on 31 December 2017. In the interim period Rice Powell, Chief Executive Officer of Fresenius Medical Care and Chairman of the Management Board, manages the EMEA region.

“I want to thank Dominik for his more than 20 years of contributions – most notably his commitment of caring for our patients at all times while enhancing our geographical footprint in the EMEA region. We are very proud of what Dominik has achieved and wish him all the best for his future,” said Rice Powell.

Katarzyna Mazur-Hofsäss has been president for EMEA at the med-tech company Zimmer Biomet since 2013. In her 25 years of professional career she has gained extensive experience in the medical and pharma industry from her positions at Abbott Laboratories and Roche. Katarzyna Mazur-Hofsäss is a physician by educational background and holds a Ph.D. from Gdansk Medical University in Poland, as well as an MBA from the Warsaw School of Economics and the University of Minnesota. “Katarzyna will not only be well equipped to run our expanding EMEA region but she will also have a fresh perspective that can provide new impulses. We look forward to welcoming her in our team,” said Rice Powell.

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases, of whom around 3.2 million worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatment to 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

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2018 Press release
news-1416 Fri, 27 Apr 2018 00:00:00 +0200 Fresenius Medical Care holds groundbreaking ceremony for new technology development center in Schweinfurt https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-holds-groundbreaking-ceremony-for-new-technology-development-center-in-schwei/ Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, has taken another step in the expansion of its production and development site in Schweinfurt, Germany. At an official ceremony today attended by Schweinfurt Mayor Sebastian Remelé, the company broke ground on a new technology center for developing dialysis machines.

As many as 250 employees from different departments will be able to work under the same roof in the 8,000-square-meter (86,000-square-foot) building. Using an open concept and designed to minimize distances that need to be covered, it will facilitate cooperation and exchanges between different teams. Fresenius Medical Care is investing a double-digit million euro sum in the construction, which is scheduled for completion late next year.

“With the new technology center, we are aiming to mesh production and development much closer together,” said Kent Wanzek, Fresenius Medical Care’s Chief Executive Officer for Global Manufacturing and Quality. “This will enable us to do an even better job developing high-quality yet affordable dialysis products for a steadily increasing number of patients.”

Dr. Olaf Schermeier, Fresenius Medical Care’s Chief Executive Officer for Global Research and Development, said: “The innovative therapy systems that will originate in our new technology center will improve the lives of our patients worldwide.”

Mayor Remelé said: “Fresenius Medical Care has been a major employer in this region and a pillar of Schweinfurt’s economy for many years. We see the building of the new technology center as a real commitment to this city, and we’re very happy about it.”

The plant in Schweinfurt, which was established in 1979, is Fresenius Medical Care’s largest development and production facility for dialysis machines and other medical devices. The company now employs more than 1,200 people in the city, about 120 kilometers (75 miles) east of Frankfurt in northern Bavaria. About one third of them work in research and development.

Dialysis machines, bloodline systems and dialyzers – the latter often dubbed “artificial kidneys” because this is where the blood is actually cleaned – are the most important products for treating chronic kidney disease. During treatment, the dialysis machine pumps the patient’s blood through bloodlines, monitors its circulation through the dialyzer, and adds anti-coagulants. Treatments are generally carried out three times weekly, and take between three and six hours each. About half of all dialysis machines and dialyzers sold worldwide are produced by Fresenius Medical Care.

Press photos

 

Technology Center Schweinfurt

Groundbreaking ceremony for new technology development center in Schweinfurt

 

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 Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases, of whom around 3.2 million worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatment to 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

 

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1413 Tue, 24 Apr 2018 00:00:00 +0200 Fresenius Medical Care wins Red Dot design award for advanced bloodline system used in hemodialysis https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-wins-red-dot-design-award-for-advanced-bloodline-system-used-in-hemodialysis/ Press Release

Fresenius Medical Care, the world’s largest provider of dialysis products and services, has won the Red Dot Award: Product Design for the company’s 6008 CAREset. This advanced all-in-one disposable with pre-connected bloodlines combines with the 6008 dialysis machine to form the 6008 CAREsystem. The 6008 CAREset was developed for use in all hemodialysis treatments, including Fresenius Medical Care’s advanced HighVolumeHDF dialysis therapy.

The Red Dot Award for outstanding international product design has been presented annually since 1955 by the Design Center North Rhine-Westphalia in Essen, Germany. More than 6,300 products from companies in 59 countries were entered into this year’s competition.

“The 6008 CAREsystem stands for reduced complexity, and minimizes the number of handling steps during dialysis,” said Dr. Olaf Schermeier, Fresenius Medical Care’s Chief Executive Officer for Global Research and Development. “The innovative design of the 6008 CAREset makes a key contribution to this. Because the bloodlines are pre-connected, the medical staff has more time to provide direct patient care. We are delighted about the recognition that this internationally renowned award will bring.”

Handling steps are reduced not only during dialysis, but during the set-up and disconnection phases before and after each treatment. The 6008 CAREset is simply inserted into the dialysis machine, eliminating the need to manually connect the bloodlines: This limits potential connection errors, which makes treatments safer. And in addition to being more cost efficient, the reduced amount of waste generated during a treatment makes the 6008 CAREsystem environmentally friendly.

Dialysis machines, bloodline systems and dialyzers – the latter often dubbed “artificial kidneys” because this is where the blood is actually cleaned – are the most important products for treating chronic kidney disease. During treatment, the dialysis machine pumps the patient’s blood through bloodlines, monitors its circulation through the dialyzer, and adds anti-coagulants. Treatments are generally carried out three times weekly, and take between three and six hours each.

About half of all dialysis machines and dialyzers sold worldwide are produced by Fresenius Medical Care.

More information about the Red Dot Award is available at https://en.red-dot.org.

 

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

 

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1411 Sun, 22 Apr 2018 15:03:43 +0200 Ad hoc announcement according to Article 17 MAR: Fresenius Medical Care adjusts its 2018 revenue growth target and confirms its net income growth target https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/ad-hoc-announcement-according-to-article-17-mar-fresenius-medical-care-adjusts-its-2018-revenue-gro/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to adjust its 2018 revenue growth target from around 8 percent to a range of 5 to 7 percent at constant currency[1].

The main reason for this adjustment is the Company’s recent reassessment of dosing of calcimimetic drugs in its dialysis service business in the United States. The reduction in dosing was faster than assumed and results in a lower than expected revenue contribution.

At the same time, Fresenius Medical Care reconfirms its 2018 net income growth target of 13 to 15 percent at constant currency. The Company’s 2018 targets continue to exclude the effects of the planned acquisition of NxStage Medical, Inc. and exclude the effects of the divestiture of Sound Inpatient Physicians Holdings, LLC.

Final financial results for the first quarter 2018 will be published, as scheduled, on 3 May 2018.

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1  2017 adjusted for the effect of IFRS 15 implementation

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

For more information visit the Company’s website at www.freseniusmedicalcare.com.

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2018 Ad hoc
news-1409 Sun, 22 Apr 2018 13:47:58 +0200 Fresenius Medical Care confirms net income growth target, adjusts 2018 revenue growth target and releases preliminary Q1 figures https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-confirms-net-income-growth-target-adjusts-2018-revenue-growth-target-and-rel/ The addition of Parsabiv as an injectable calcimimetic drug in the U.S. triggered the move of the corresponding reimbursement for Medicare patients from Part D to Part B. Press Release

  • Adjusted revenue growth target in 2018 of 5 to 7% at constant currency expected (previously around 8%) mainly due to recent reduction in dosing of calcimimetic drugs
  • Reconfirmed reported net income growth target of 13 to 15% at constant currency in 2018
  • Preliminary indicative first quarter 2018 results impacted by strong currency headwind and positive one-time effect in previous year 

“First quarter results are impacted by a shift of calcimimetic drugs from our pharmacy business into the dialysis service business in the U.S. Due to a faster than expected reduction in dosing of those drugs in the controlled clinic environment, we are experiencing a headwind on revenue growth for fiscal 2018,” said Rice Powell, CEO of Fresenius Medical Care. “Based on our solid underlying business and the planned phasing of net income growth we confirm our net income growth target for 2018.”

Clinical introduction of calcimimetic drugs with impact on revenue growth 2018

The addition of Parsabiv as an injectable calcimimetic drug in the U.S. triggered the move of the corresponding reimbursement for Medicare patients from Part D to Part B. This resulted in a revenue decline in the Company´s pharmacy business and a lower than assumed revenue increase in the dialysis service business driven by lower than expected dosing of calcimimetic drugs. It is imperative that drugs are delivered in an efficient and effective manner in Fresenius Medical Care´s controlled clinic environment to the patients who benefit from the use of those drugs. The Company actively manages all classes of medications focusing on the quality outcomes for patients and the overall cost to the respective health care system.

Preliminary indicative key figures (IFRS) – first quarter 2018 compared to first quarter 2017, adjusted for IFRS 15

EUR million Q1 2018 Growth yoy Growth yoy at cc
Revenue 3,976 (10%) 2%
Revenue Q1 2017 excluding VA Agreement1 3,976 (8%) 4%
Operating income (EBIT) 497 (24%) (15%)
Operating income (EBIT) adjusted for valuation of the Sound Physicians’ share based payments2   and excluding VA Agreement Q1 20171 510   510 (22%)   (8%) (13%)           3%
Net income3 279 (10%) 0%
Net income adjusted for valuation of the Sound Physicians’ share based payments2   and excluding special items (VA Agreement1, U.S. Tax Reform) 292   244 (5%)   (2%) 5%          8%    

cc=constant currency / For a reconciliation, please refer to the table at the end of the press release.

Preliminary first quarter 2018 results

Revenue in the first quarter 2018 was strongly impacted by headwinds from foreign exchange rates, the expected decline in our North American Care Coordination business and the positive one-time effect in Q1 2017. Revenue came in below the level of the previous year’s quarter with EUR 3,976 million. Adjusted for IFRS 15 and at constant currency, revenue increased by 2%, excluding the VA Agreement in Q1 2017 the first quarter growth was 4% at constant currency.

Operating income (EBIT) in the first quarter 2018 reached EUR 497 million. Adjusted for the first quarter effect of the valuation of Sound Physicians’ share based payment program in connection with the divestiture of Sound Physicians and for the positive impact of the VA Agreement in Q1 2017 EBIT was up by 3% at constant currency.

Net income3 for the first quarter of 2018 was stable at constant currency at EUR 279 million. Adjusted for the first quarter effect of the valuation of Sound Physicians’ share based payment program and the effect of the U.S. Tax Reform in 2018 and for the positive impact of the VA Agreement in Q1 2017, net income was 8% ahead in constant currency of last year’s first quarter.

Outlook 2018

Mainly driven by the change in calcimimetic drugs Fresenius Medical Care expects reduced revenue growth of 5 to 7% (previously: around 8%) at constant currency. The company continues to expect reported net income growth of 13 to 15% at constant currency.

The targets are based on 2017 adjusted for the effect of the IFRS 15 implementation and exclude effects from major transactions such as the planned acquisition of NxStage Medical and the sale of Sound Physicians.

Publication and conference call

Fresenius Medical Care will publish the results of the first quarter, as scheduled, on Thursday, May 3, at 7:00 a.m. CET and hold a conference call to discuss the results of the first quarter at 3:30 p.m. CET / 9:30 a.m. EDT. Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

 

1 Agreement with the United States Department of Veterans Affairs and Justice

2 Initial increase in valuation of the Sound Physicians' shared based payment program caused by the sale of Sound

3 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

For more information visit the Company’s website at www.freseniusmedicalcare.com.

Disclaimers

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

 

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2018 Press release
news-1405 Sat, 21 Apr 2018 00:00:00 +0200 Ad hoc announcement according to Article 17 MAR: Fresenius Medical Care sells Sound Inpatient Physicians Holdings for $2.15 billion https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/ad-hoc-announcement-according-to-article-17-mar-fresenius-medical-care-sells-sound-inpatient-physi/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, today has signed a definitive agreement to divest its controlling interest in Sound Inpatient Physicians Holdings, LLC (“Sound”) to an investment consortium led by Summit Partners, L.P. for total transaction proceeds of $2.15 billion (EUR 1.76 billion1). The divestment is expected to generate a pre-tax book gain of approximately EUR 800 million1,2.

In 2014, Fresenius Medical Care invested in becoming the majority shareholder in Sound, which thereafter acquired Cogent Healthcare, Inc. The investments by Fresenius Medical Care were targeted to learn about and broaden its experience in value-based care programs of those businesses. Following the successful application of this knowledge relevant for value-based programs and efficient patient coordination into Fresenius Medical Care, the Company is now in a position to divest the shareholding and free up the invested capital for further growth investments.

Closing of the transaction is subject to regulatory approvals and anticipated to occur late in 2018. The financial targets for 2018 and 2020 do not include the effects of this divesture.

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1 EUR/USD 1.22
2 based on the company’s latest available valuation of the North American business segment

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2018 Ad hoc
news-1407 Sat, 21 Apr 2018 00:00:00 +0200 Fresenius Medical Care optimizes its U.S. Care Coordination portfolio and sells Sound Inpatient Physicians Holdings for $2.15 billion https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-optimizes-its-us-care-coordination-portfolio-and-sells-sound-inpatient-phys/ Press Release

 

Fresenius Medical Care, the world’s largest provider of dialysis products and services, today announced an important strategic step to sharpen its U.S. Care Coordination profile with the signing of a definitive agreement to divest its controlling interest in Sound Inpatient Physicians Holdings, LLC (Sound) to an investment consortium led by Summit Partners (Summit), for total transaction proceeds of $2.15 billion (EUR 1.76 billion1). Sound is a physician organization providing services across the acute episode of care – through emergency medicine, critical care, hospital medicine, transitional care and advisory services (www.soundphysicians.com).

To gain a deeper understanding and expertise on the highly efficient coordination of patients while improving the quality outcomes and reducing total cost to the health care system at the same time, Fresenius Medical Care invested to become majority shareholder in Sound in 2014. In the same year, Sound expanded its footprint with the acquisition of Cogent Healthcare, Inc. Due to the participation in the major value-based program BPCI (Bundled Payments for Care Improvement) focusing on improving quality while lowering costs, Fresenius Medical Care was able to learn and significantly broaden its experience in value-based care programs in the U.S.

In 2017, Sound generated revenues of around EUR 1.25 billion and EBIT of around EUR 90 million with 3,500 employees.

“In the previous years we have gained insight and successfully applied the knowledge on efficient patient coordination and on value-based programs in our unit called Fresenius Health Partners where we run the ESCOs, our own Medicare Advantage plan and various sub-capitated arrangements. This was an important milestone in the execution of our Care Coordination strategy,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “As we are now very well positioned in the U.S. to ensure high quality outcomes for our dialysis patients in a health care system that is moving towards value-based care, we are enabled to divest Sound and release the invested capital for further focused growth investments to add value for our shareholders.”

“The acquisition by Summit provides Sound with the opportunity to expand its existing service lines in a rapidly changing market and tap into new areas. This is a great chance for Sound’s employees to be part of this next development step,” said Bill Valle, Chief Executive Officer of Fresenius Medical Care North America.

The divestment is expected to generate a pre-tax book gain for Fresenius Medical Care of approximately EUR 800 million2,3. Closing of the transaction is subject to regulatory approvals and anticipated late in 2018.

The financial targets for 2018 and 2020 do not include the effects of this divesture or the planned acquisition of NxStage Medical, Inc.

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1 EUR/USD 1.22
2 EUR/USD 1.22
3 Based on the company’s latest available valuation of the North American business segment

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Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1379 Tue, 27 Feb 2018 00:00:00 +0100 Fresenius Medical Care published form 20-F for the fiscal year 2017 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-published-form-20-f-for-the-fiscal-year-2017/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, announced that it has filed the annual report 2017 under form 20-F with the U.S. Securities and Exchange Commission (SEC). Press Release

 

Fresenius Medical Care, the world’s largest provider of dialysis products and services, announced that it has filed the annual report 2017 under form 20-F with the U.S. Securities and Exchange Commission (SEC). The report is available in the “Investors” section as well as at the SEC's website.

A hard copy of Fresenius Medical Care’s annual report on form 20-F including the complete audited financial statements may be obtained from the company free of charge upon request to the company's Investor Relations department by email at ir@fmc-ag.com.

 

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimers

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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2018 Press release
news-1375 Mon, 26 Feb 2018 00:00:00 +0100 Fresenius Medical Care achieves record results in 2017 and targets strong net income growth in 2018 https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/fresenius-medical-care-achieves-record-results-in-2017-and-targets-strong-net-income-growth-in-2018/ For 2018, Fresenius Medical Care expects revenue growth of around 8% at constant currency. The 2018 targets are based on 2017 revenue adjusted for the effect of the IFRS 15 implementation. Press Release Financials Financials

  • Targets 2017 achieved
  • Strong revenue growth of 9% at constant currency
  • Net income growth of 14% at constant currency
  • Record dividend of EUR 1.06 for fiscal year 2017 proposed
  • Strong net income growth for 2018 targeted

 

Key figures (IFRS) – fourth quarter and full year 2017

EUR million Q4 2017 Growth yoy Growth
yoy at cc
FY
2017
Growth
yoy
Growth
yoy at cc
Revenue 4,429 0% +8% 17,784 +7% +9%
Adjusted revenue 4,430 0% +8% 17,690 +7% +9%
Operating income (EBIT) 519 (29%) (22%) 2,362 (2%) 0%
Adjusted operating income 726 0% +6% 2,493 +4% +5%
Net income1 394 +8% +16% 1,280 +12% +14%
Adjusted net income1 362 0% +6% 1,204 +5% +7%

cc = at constant currency

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.

“In 2017 we continued the success story of Fresenius Medical Care with another set of record results. We managed an unusual number of severe natural disasters, have delivered on our financial targets, and again we are able to propose the highest dividend in our Company’s history,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “With the acquisition of the Cura Group in Australia and our planned acquisition of NxStage we are setting the course for future periods beyond our published 2020 outlook. We will continue improving our cost base with the implementation of the second phase of our Global Efficiency Program, GEP II. In 2018, we intend to continue the profitable growth track and further optimize our portfolio in the core dialysis as well as in the Care Coordination business.”

High net income growth for 2018 targeted

For 2018, Fresenius Medical Care expects revenue growth of around 8% at constant currency. The 2018 targets are based on 2017 revenue adjusted for the effect of the IFRS 15 implementation. Net income is expected to increase by 13 to 15% at constant currency including recurring benefits from the U.S. tax reform of EUR 140 to 160 million. The targets do not include effects from the NxStage acquisition. Fresenius Medical Care reconfirms the mid-term outlook for 2020, excluding the effect from IFRS 15 implementation and the recurring benefits from the U.S. tax reform in the years 2018 to 2020.

EUR million Targets 20182 2017 base
Revenue growth3 ~8% 17,298
Net income growth4 13 to 15% 1,280


21st consecutive dividend increase proposed

Based on the strong results for full year 2017, a dividend of EUR 1.06 per share, representing a dividend increase of 10%, will be proposed to the Annual General Meeting in May.

Strong underlying revenue and net income growth in 2017

Revenue in the fourth quarter 2017 – strongly impacted by headwinds from foreign exchange rates – came in at the level of the previous year’s quarter with EUR 4,429 million. At constant currency, revenue increased by 8% (+8% excluding the VA Agreement). Health Care Services revenue reached EUR 3,581 million and Health Care Products revenue came in at EUR 848 million. Both increased by 8% at constant currency.

Revenue for full year 2017 increased by 9% at constant currency to EUR 17,784 million (+9% excluding the VA Agreement). Health Care Services revenue increased by 10% at constant currency to EUR 14,532 million, mainly due to strong underlying organic growth and contributions from acquisitions. Health Care Products revenue increased by 7% at constant currency to EUR 3,252 million. This growth was primarily driven by higher sales of dialyzers, non-dialysis products in the acute business, machines and peritoneal dialysis products.

Corporate cost in the fourth quarter 2017 amounted to EUR 289 million. The strong increase compared to the fourth quarter 2016 (EUR 82 million) is mainly driven by the recognition of a charge of EUR 200 million based on ongoing discussions toward a settlement with the U.S. Securities and Exchange Commission and the U.S. Department of Justice that would avoid litigation over government demands under the Foreign Corrupt Practices Act related to certain identified conduct, including certain legal expenses and other related costs or asset impairments (“FCPA related charge”). In 2012, Fresenius Medical Care voluntarily advised the U.S. Department of Justice and the U.S. Securities Exchange Commission about its investigations into this conduct.

Operating income (EBIT) in the fourth quarter 2017 reached EUR 519 million. Adjusted EBIT increased by 6% at constant currency and reached EUR 726 million. For full year 2017, EBIT was EUR 2,362 million. On an adjusted basis EBIT increased by 5% at constant currency to EUR 2,493 million, mainly due to the strong business performance in North America and in Asia-Pacific.

Net interest expense in the fourth quarter 2017 was EUR 80 million, compared to EUR 90 million in the fourth quarter 2016. For full year 2017 net interest expense was EUR 354 million, a decrease of 3% year over year. The decrease was positively influenced by the replacement of interest bearing bonds, repaid in 2016 and 2017 by debt instruments at lower interest rates.

Income tax expense in the fourth quarter 2017 benefited from a book gain from the U.S. tax reform of EUR 236 million. Mainly for this reason, full year 2017 income tax expense decreased by 27% to EUR 454 million.

This decrease mainly resulted from the U.S. tax reform. Excluding (i) the impact from the VA Agreement, (ii) the effects associated with natural disaster costs, (iii) the FCPA related charge of EUR 200 million which was not tax effected and (iv) the U.S. tax reform, the 2017 effective tax rate increased to 31.0%, an increase of 50 basis points compared to the same period of 2016.

Net income1 for the fourth quarter of 2017 increased by 16% at constant currency to EUR 394 million. Adjusted for the impact from (i) the unfavorable effects of the VA Agreement (EUR 1 million), (ii) natural disaster costs in North America (EUR 3 million), (iii) FCPA related charge (EUR 200 million), as well as (iv) the benefit from the U.S. tax reform (EUR 236 million), net income was EUR 362 million (0%, +6% at constant currency). Based on approximately 306.9 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) improved by 8%, to EUR 1.28. Adjusted for the effects described before, EPS was EUR 1.18 (0%, +6% at constant currency).

For 2017 net income1 increased by 14% at constant currency to EUR 1,280 million. Excluding the four effects described in the previous paragraph ((i) EUR +51 million, (ii) EUR -11 million, (iii) EUR -200 million, and (iv) EUR +236 million), net income increased to EUR 1,204 million (+5%, +7% at constant currency). Based on approximately 306.6 million shares, basic EPS increased from EUR 3.74 to EUR 4.17 (+12%). Excluding the effects described above, EPS increased to EUR 3.93 (+5%, +7% at constant currency).

North America with strong growth supported by Care Coordination

In the fourth quarter 2017, the North America segment generated revenue of EUR 3,164 million (+8% at constant currency), strongly influenced by currency headwinds. Health Care Services revenue came in at EUR 2,950 million (+8% at constant currency), of which Care Coordination contributed EUR 715 million (+24% at constant currency) driven by significant organic revenue growth of 19%. Dialysis Care revenue reached EUR 2,235 million (+3% at constant currency). With $352, revenue per treatment in the United States was slightly down (-1%) due to lower revenue with commercial payors. 

Cost per treatment increased by 3% to $276, largely driven by higher bad debt expenses, higher personnel expense and various other costs. The strong growth of the Health Care Products revenue (EUR 214 million, +9% at constant currency) was mainly driven by higher sales of machines, renal drugs and peritoneal dialysis products.

Operating income in North America in the fourth quarter reached EUR 608 million (+11% at constant currency). The operating income margin of 19.2% came in above last year’s strong fourth quarter margin of 18.4%. The improvement was triggered by an extraordinarily high contribution from Care Coordination which achieved an EBIT margin of 12.5%. The improvement was mainly driven by higher revenue including an acceleration of earnings from the Bundled Payment for Care Improvements (BPCI) initiative for previous reporting periods combined with increased volumes for hospital-related physician services, lower bad debt expense and the gain from the sale of Shiel Medical Laboratory. The Dialysis EBIT in North America reached EUR 519 million (-6% at constant currency), impacted by higher bad debt and personnel expenses, lower revenue with commercial payors, higher costs such as rent and insurance, the impact from natural disasters and higher costs for health care supplies.

For full year 2017, North America revenue increased by 9% at constant currency to EUR 12,879 million. Health Care Services revenue grew by 10% at constant currency to EUR 12,036 million, driven by higher Dialysis Care revenue (+5% at constant currency to EUR 9,227 million) and increased Care Coordination revenue (+28% at constant currency to EUR 2,809 million). Operating income increased in line with revenue growth to EUR 2,086 million (+10% at constant currency). As of the end of 2017, we had 197,356 patients being treated at the 2,393 clinics in North America. Dialysis treatments increased by 3%.

Solid Health Care Products and Health Care Services growth in EMEA

Revenue in the EMEA segment increased by 6% at constant currency to EUR 660 million in the fourth quarter 2017. Health Care Services revenue increased by 4% at constant currency to EUR 312 million. This was mainly the result of growth in same market treatments and contributions from acquisitions. Health Care Products revenue in EMEA increased by 7% at constant currency and reached EUR 348 million. The growth in Dialysis Products revenue was driven by higher sales of products for acute care, products for peritoneal dialysis and machines, partially offset by lower sales of dialyzers. Non-dialysis products increased due to higher sales of acute cardiopulmonary products. Operating income in the EMEA segment decreased by 7% at constant currency to EUR 110 million in the fourth quarter 2017. The operating income margin decreased year-over-year to 16.7% (Q4 2016: 19.0%) mainly due to further investments in Xenios and unfavorable foreign currency transaction effects.

For full year 2017, EMEA revenue increased by 6% at constant exchange rates to EUR 2,547 million and operating income decreased to EUR 444 million (-6% at constant currency). As of the end of 2017, we had 62,490 patients being treated at 746 clinics in EMEA. Dialysis treatments increased by 5%.

Growth in Asia-Pacific fuelled by acquisitions

Asia-Pacific revenue grew strongly by 12% at constant currency to EUR 418 million in the fourth quarter 2017. With EUR 191 million in Health Care Services revenue the region recorded growth of 17% at constant currency, mainly driven by the acquisition impact from Cura Group in Australia. The 7% constant currency growth in Health Care Products revenue to EUR 227 million was mainly supported by higher sales of dialyzers, bloodlines and products for peritoneal dialysis. Operating income reached EUR 76 million (-8% at constant currency). The operating income margin was 18.2% (Q4 2016: 21.8%). This was primarily driven by cost related to the build-up of dialysis services and peritoneal dialysis product business in China, the impact from foreign currency transaction effects and unfavorable mix effects related to acquisitions with lower margins.

For full year 2017, Asia-Pacific revenue grew by 13% at constant currency to EUR 1,623 million and operating income increased by 10% at constant currency to EUR 313 million. Operating income margin was stable on a high level of 19.3% (FY 2016: 19.6%). As of the end of 2017, we had 29,739 patients being treated at 381 clinics in Asia-Pacific. Dialysis treatments increased by 6%.

Improved contribution from Latin America

Latin America delivered revenue of EUR 185 million in the fourth quarter 2017, an increase of 16% at constant currency. Health Care Services revenue increased by 16% at constant currency to EUR 128 million and was driven by higher organic revenue per treatment. Health Care Products revenue increased by 15% at constant currency to EUR 57 million, mainly due to higher sales of machines, dialyzers and concentrates. Operating income came in at EUR 14 million (-12% at constant currency). The operating margin was 7.4% (Q4 2016: 9.7%), impacted by unfavorable foreign currency transaction effects, higher manufacturing costs primarily related to inflation, higher overhead costs and only partially offset by reimbursement rate increases that mitigate inflationary cost increases.

For full year 2017, Latin America revenue grew by 15% at constant currency to EUR 720 million and operating income increased by 3% at constant currency to EUR 58 million. Operating income margin was at 8.1% (FY 2016: 9.2%). As of the end of 2017, we had 31,375 patients being treated at 232 clinics in Latin America. Dialysis treatments increased by 2%.

Solid operating cash flow

In the fourth quarter 2017, the company generated net cash provided by operating activities of EUR 528 million, representing 11.9% of revenue (Q4 2016: EUR 772 million). The decrease was primarily attributable to a less favorable DSO (days sales outstanding) effect this year and higher income tax payments.

In full year 2017, the company generated net cash provided by operating activities of EUR 2,192 million, compared to EUR 1,932 million for full year 2016. This represents 12.3% of revenue, clearly reaching our 2017 target of more than 10%. The increase in net cash provided by operating activities was largely driven by the payment from the U.S. Departments of Veterans Affairs and Justice for reimbursement, the impact of the 2016 discretionary contribution of EUR 90 million to pension plan assets in the U.S. and the impact of other working capital items, partially offset by higher income tax payments. Free cash flow was also very strong at EUR 1,351 million, compared to EUR 1,017 million for full year 2016. DSO as of December 31, 2017 was 67 days, a decrease of 3 days compared to the previous year.

Global Efficiency Program phase II

Fresenius Medical Care has launched the second phase of its Global Efficiency Program (GEP II) in 2018. The program’s objectives are to identify and realize further efficiency potential and enhance the overall competitiveness of Fresenius Medical Care. Starting in 2018, GEP II targets to achieve sustained cost improvements of EUR 100 to 200 million per annum by 2020.

NxStage acquisition to foster home penetration

In August 2017, Fresenius Medical Care signed a merger agreement to acquire NxStage Medical, Inc., a U.S.-based medical technology and services company. The planned acquisition has a total transaction volume of approximately EUR 1.7 billion (USD 2.0 billion). On October 27, shareholders of NxStage approved the acquisition by Fresenius Medical Care. The completion of the acquisition is subject to regulatory approvals and other customary closing conditions. Closing is expected to occur in 2018.

Press Conference

Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year 2017 on Tuesday, February 27, 2018, at 10 am CET. The press conference will be webcasted in the Media center. A replay will be available shortly after the conference.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the fourth quarter and full year 2017 on Tuesday, February 27, at 3:30 p.m. CET / 9:30 a.m. EDT. The company invites investors to follow the live webcast of the call in the “Investors/Events” section. A replay will be available shortly after the call.

1Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
2Numbers at constant currency
3Reported revenue 2017 of EUR 17,784 million adjusted for effect from IFRS 15 implementation of EUR 486 million
4Targets 2018: including recurring benefits from U.S. tax reform of EUR 140 to 160 million

Please refer to our statement of earnings included as separate excel- and PDF-files for a complete overview of the results for the fourth quarter and full year 2017.

***

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimers

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

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2018 Press release
news-1377 Mon, 26 Feb 2018 00:00:00 +0100 Ad hoc announcement according to Article 17 MAR: Fresenius Medical Care establishes provision of EUR 200 million regarding ongoing FCPA settlement negotiations https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/ad-hoc-announcement-according-to-article-17-mar-fresenius-medical-care-establishes-provision-of-eur-200-million-regarding-ongoing-fcpa-settlement-negotiations/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to establish a provision in the total amount of EUR 200m in its 2017 annual financial statements with respect to its ongoing settlement negotiations with the U.S. government regarding conduct that may have violated provisions of the U.S. Foreign Corrupt Practices Act (FCPA).

This provision takes into account recent developments in the ongoing settlement negotiations with the U.S. Department of Justice and the U.S. Securities Exchange Commission. The provision represents an estimate from a range of potential outcomes. The charge encompasses government agencies’ claims for profit disgorgement, as well as accruals for fines and/or penalties, certain legal and other consultancy expenses and other related costs or asset impairments. In 2012, Fresenius Medical Care voluntarily advised the U.S. Department of Justice and the U.S. Securities Exchange Commission about its investigations into this conduct.

The settlement negotiations are continuing and have not yet achieved an agreement-in-principle; failure to reach agreement remains possible.

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Ad hoc 2018
news-1339 Fri, 22 Dec 2017 21:30:52 +0100 Ad hoc announcement according to Article 17 MAR: Fresenius Medical Care expects material positive effects from US tax reform https://www.freseniusmedicalcare.com/en/media/news/details/detail/News/ad-hoc-announcement-according-to-article-17-mar-fresenius-medical-care-expects-material-positive-effects-from-us-tax-reform/ Fresenius Medical Care, the world’s largest provider of dialysis products and services, expects material positive effects from the tax reform legislation signed into law in the United States today. The new law goes into effect on January 1, 2018.

In particular, the new legislation triggers the re-evaluation of deferred tax liabilities. This results in a one-time book gain of around 200 million Euros, to be reflected in 2017 Earnings After Tax.

On February 27, 2018 the company will release its 2017 business results and discuss the ongoing tax effect as part of its guidance for 2018.

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2017 Ad hoc