Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) recently announced that the FDA has approved its computer-assisted ultrafiltration control software, which aims at improving fluid management during hemodialysis (HD). This further fortifies the company's foothold in the global renal medical devices and services space.
The ultrafiltration control software is designed to work with the company’s newer HD machines and provide computer-assisted diagnosis. Notably, effective fluid management is critical for ensuring the best HD treatment.
However, following the announcement, shares of the company dipped 2% to $38.56 at close.
Fresenius Medical’s Products at a Glance
Fresenius Medical provides a wide range of dialysis products to its own dialysis clinics and third-party clinics.
These include modular machine components, dialyzers, bloodline systems, HD solutions and water treatment systems. The company’s HD CAREsystem, CAREset and production and testing dialysis machines currently have a robust demand in the market.
The company also offers a wide array of HD, Peritoneal dialysis (PD) and Acute Dialysis products. Under Acute Therapies, the multiFiltratePRO machine deserves a mention.
Mordor Intelligence states that the global renal medical devices and services market is expected to see a CAGR of about 6% from 2018 to 2023. The rising incidence of chronic kidney diseases across the globe is currently fueling the market.
Hence, the latest approval has been a well-timed one for the kidney care giant.
Some other key players in the renal care space are DaVita (DVA - Free Report) and Baxter International (BAX - Free Report) . DaVita Kidney Care, an operating division of the company, has been successfully driving its top line. Baxter also has a core Renal segment, which primarily offers PD and HD therapies.
In the past year, shares of this Zacks Rank #3 (Hold) stock have declined 22.7%, against the industry’s 10% rise. The current level also compares unfavorably with the S&P 500 index’s 5.6% increase.
A Key Pick
A better-ranked stock in the broader medical space is Veeva Systems (VEEV - Free Report) .
Veeva Systems’ long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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