Fresenius Medical Care (FMS - Free Report) recently announced plans to expand the scope of its clinical research activities through a global integration move. A previous subsidiary of Fresenius Medical Care North America, Frenova Renal Research (Frenova), will henceforth be offering its services globally and will be integrated into the company’s new Global Medical Office.
Fresenius Medical Care is the world’s leading provider of dialysis products and services.
More About the Expansion Plans
Frenova offers services for the clinical development of medicines and medical products in the field of kidney research. This service, previously restricted to North America, will now be linked with the corresponding offerings of Fresenius Medical Care’s Europe, Middle East and Africa (EMEA) and Latin America regions and integrated under Frenova. This will ensure that the company builds a network of more than 550 researchers at over 350 locations.
By making this available worldwide, the company will facilitate faster and more efficient development of medications and other products that will guarantee better quality patient outcome.
Per Allied Market Research, the global dialysis market was valued at $86.62 billion in 2016 and is estimated to reach $118.51 billion at a CAGR of 4.5% from 2017 to 2023. Hence, the company’s global expansion move is a well-timed one.
Lately, Fresenius Medical Care has been taking steps to expand its services geographically.
For instance, in May 2019, the company inaugurated a distribution center in Knoxville, Tennessee., which will accelerate the company's efforts to increase its coverage of patients with kidney failure who choose home dialysis.The new distribution will be the company's largest on the East Coast.
In February 2019, Fresenius Medical Care successfully closed the acquisition of NxStage Medical, Inc. Notably, NxStage manufactures and markets an innovative product portfolio of medical devices for use in home dialysis and critical care. The acquisition should help Fresenius Medical Care tap into its manufacturing, supply chain and marketing abilities across the dialysis products, services and Care Coordination businesses in a less labor- and capital-intensive care setting.
In the past six months, the stock has gained 14.9% compared with the industry’s 10.5% rise.
Zacks Rank and Key Picks
Fresenius Medical Care currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader medical space are Teleflex Inc. (TFX - Free Report) , Penumbra (PEN - Free Report) and Bruker Corporation (BRKR - Free Report) . While Penumbra sports a Zacks Rank #1 (Strong Buy), the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Teleflex’s long-term earnings growth rate is expected to be 13.7%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
Bruker’s long-term earnings growth rate is estimated at 12.6%.
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