Back to top

Image: Bigstock

Fresenius Medical's (FMS) New Dialyzer to Boost Patient Outcome

Read MoreHide Full Article

Fresenius Medical Care AG & Co. (FMS - Free Report) recently announced that it is launching a new dialyzer for hemodialysis, the FX CorAL— the newest dialyzer in the company’s FX class of dialyzers which use polysulfone (a special plastic with exceptional filtering and hemocompatibility characteristics). The FX CorAL was unveiled in Fresenius Medical Care’s NephroCare clinics after it received the CE mark, and has already been used in more than three million treatments.

For investors’ note, the FX CorAL is already available in Switzerland and will be gradually launched in Germany, France, Italy and the United Arab Emirates. Other countries in the company’s Europe, Middle East and Africa region will follow.

The latest launch is expected to significantly solidify Fresenius Medical’s business on a global scale.

Significance of the Launch

The highlight of the FX CorAL dialyzer is its clinical performance and hemocompatibility. It is noteworthy to mention that dialysis patients often suffer from chronic inflammation caused by the accumulation of toxic substances and the regular contact of their blood with external substances. These inflammations reduce patients’ quality of life and lead to the onset of cardiovascular diseases.

The design of the FX CorAL dialyzer is such that it absorbs lower proteins, thereby achieving a lower induction of the immune response in the patient while maintaining high selective permeability for the removal of toxins and excess water. Additionally, all FX-class dialyzers are steam-sterilized and environment friendly.

Per management, combining clinical performance with hemocompatibility is expected to significantly improve treatment quality of the company’s dialysis patients, thereby enhancing the patients’ well-being.

Industry Prospects

Per a report published by Market Reports World, the global dialyzer market was valued at $6535 million in 2020 and is expected to reach $10210 million by the end of 2027 at a CAGR of 6.6%. Factors like rise in elderly population and surge in incidence of renal diseases (especially end stage renal disease) are likely to drive the market.

Given the market potential, the latest launch is expected to significantly boost Fresenius Medical’s business on a global scale.

Notable Development

In November, Fresenius Medical announced its third-quarter 2021 financial results, where it registered revenue growth across EMEA, Asia Pacific and Latin America regions.

Price Performance

Shares of the company have lost 29.2% in the past year against the industry’s 8.2% rise and the S&P 500 composite’s 27.6% growth.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Currently, Fresenius Medical carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are AmerisourceBergen Corporation (ABC - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and AMN Healthcare Services (AMN - Free Report) .

AmerisourceBergen, carrying a Zacks Rank #2 (Buy), reported fourth-quarter fiscal 2021 adjusted earnings per share (EPS) of $2.39, which beat the Zacks Consensus Estimate by 1.3%. Revenues of $58.91 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AmerisourceBergen has an estimated long-term growth rate of 11.3%. The company surpassed estimates in the trailing four quarters, the average surprise being 5.48%.

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.

Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed estimates in the trailing four quarters, the average surprise being 9.02%.

AMN Healthcare reported third-quarter 2021 adjusted EPS of $1.73, which surpassed the Zacks Consensus Estimate by 29.1%. Third-quarter revenues of $877.8 million outpaced the Zacks Consensus Estimate by 12.3%. It currently sports a Zacks Rank #1.

AMN Healthcare has an estimated long-term growth rate of 16.2%. The company surpassed estimates in the trailing four quarters, the average surprise being 19.51%.