**: The home of the instrument, unauthorized shall not **, and 24 hours later**.
Recently, Reuters reported that Fresenius has hired a Swiss bank to manage its **clinic business** to focus more on the company's core business.
It is reported that the Fresenius** clinic, also known as the post-acute care clinic, is part of the group's VAMED, and its value could be as high as 800 million euros (about 8.).$5.8 billion, $61RMB 8.3 billion).
According to the data, since the appointment of Michael Sen, CEO of Fresenius Group, in October 2022, it has carried out several cost cuts and non-core divisions. He has said the group will focus on generic drug division Kabi and hospital operator Helios, while vamed and a stake in dialysis business Fresenius Medical Care will be seen as a financial investment.
In November, Fresenius also announced that it would give up to 500 million euros of fertility clinics to a KKR-led consortium.
Clinics
Focus on core business development
According to the data, Fresenius Group, as a leading service provider with its own care facility in Europe, VAMED bridges the gap between preventive medicine and health tourism and is the leader in the Austrian market.
With its best facilities, Fresenius helps patients to minimize limitations caused by illness or accidents. VAMED relies on a combination of modern medicine, personalized and tailor-made goals, and personal attention. Thus, even after a serious illness, patients are able to achieve optimal improvements in their functioning in order to increase their self-activity and participation in all spheres of life as much as possible.
The Fresenius Group is a leading privately-owned** service provider in Austria, Germany, Switzerland and the Czech Republic with more than 8,200 beds. In addition to well-established inpatient clinics, it is increasingly important to provide outpatient** options close to the patient's home. VAMED has significantly expanded this service with its digitalization** providing patients with comprehensive, ongoing and effective**.
And the clinic announced this time is part of Fresenius VAMED. Reuters reported that Fresenius' move was to focus more on the development of its core business.
It is worth mentioning that Fresenius previously announced that it would carry out EUGIN, a global assisted reproductive clinic group. At the time, people familiar with the matter said that the company, which is based in Bad Homburg, Hesse, Germany, was recently awaiting a binding effect on its subsidiary EUGIN**. At that time, it was expected that EUGIN's EBITDA (earnings before interest, taxes, depreciation and amortization) would reach around 30 million euros by 2023, with a valuation of 4 to 500 million euros.
In November of this year, Fresenius announced that Eugin ** was awarded to KKR's fertility medicine group IVI RMA and Spanish asset manager Ged Capital, amounting to 500 million euros. It is reported that Fresenius acquired EUGIN at the end of 2020, which has 69 clinics in 11 countries around the world. In 2022, EUGIN achieved sales of 22.7 billion euros.
Financial investors such as New York-based global private equity giant KKR Group, Luxembourg-based European private equity giant CVC Capital, and Abu Dhabi's sovereign wealth Mubadala are expected to make takeovers, according to the data.
Declining performance
The two subsidiaries will be independent
According to the data, Fresenius Group is a large multinational medical enterprise, headquartered in Baden-Homburg, Germany, founded in 1912, with a long history, before the group was Fresenius Medical Care (Fresenius Medical Care) main dialysis products and services;Fresenius Kabi is mainly engaged in pharmaceuticals and nutritional products;Fresenius Helios is mainly engaged in hospital operations and Fresenius Vamed is mainly engaged in medical project services.
Among them, Fresenius Medical Care, as one of its subsidiaries, is the world's leading provider of products and services for patients with kidney disease. Globally, approximately 3.8 million patients receive dialysis on a regular basis**. Through its network of 4171 dialysis clinics, the company accounts for approximately 34Dialysis is available to 50,000 patients**.
However, despite the fact that Fresenius is the absolute leader in the industry with a global market share of more than 42% for dialysis equipment and consumables, the share price of the Group's two DAX listed companies has increased by more than two-thirds over the past five years.
During the epidemic, the company's performance fell sharply due to the high overlap between COVID deaths and dialysis patients. According to the 2022 financial report, Fresenius Medical Care's total revenue in 2022 was 19.4 billion euros, an increase of 10% year-on-year. Net income 6700 million euros, down 37% year-on-year.
On February 21, 2023, Fresenius Group announced that it would relinquish control of Fresenius Medical Care (FMC) due to declining earnings.
In July 2023, the approval of the Extraordinary General Meeting of Shareholders marks the official start of this transformation, and it is expected that the entire process of transformation into Fresenius Medical Care AG will be completed by the end of 2023, at which point Fresenius Medical Care will no longer be part of the fully consolidated subsidiary of the Fresenius Group. After the transformation into a joint-stock company, Fresenius Medical Care will be able to make decisions more efficiently and quickly, with greater flexibility in terms of financial strategy. In the future, the Supervisory Board of the Company will consist of twelve members.
At the then extraordinary general meeting of shareholders, Fresenius Group held 322% of the shareholders and two members of the Supervisory Board were appointed: Michael Sen, CEO of the Group, was elected as the new Chairman of the Supervisory Boardand Sara Hennicken, Chief Financial Officer. This appointment confirms the close relationship between Fresenius Group and Fresenius Medical Care.
At the same time, it was reported that Fresenius Medical Care's "independence" is only part of Michael Sen's reform plan, and that the next step will be to push for a similar transformation of the medical project services subsidiary Vamed. In 2022, Vamed's operating profit increased from 1€0.1 billion** to €20 million, sales of €2.3 billion.
Due to the decline in performance, at the end of June this year, Fresenius announced that Ernst Wastler, CEO of VAMED, would retire in mid-July;Michael Moser, a member of the Fresenius Management Board and former energy manager, will oversee VAMED's operations in the future.
The Fresenius Group now has three business segments.
In addition, Fresenius also said at the time that in the future, VAMED and FMC would only be managed as financial investments for the group. The Group will initially focus on the Kabi (pharmaceutical) and Helios (hospitals) businesses.
Complete the split
Integration of Fresenius Medical Care
In addition to the spin-off with the Group, Fresenius Medical Care also integrated its business internally.
According to the company's 2022 financial report, North America is currently the company's largest market, accounting for 70% of total revenue. Last year, Fresenius Medical Medical launched a new layout in the United States, completing three businesses in the United States, Fresenius Health Partners merged with Interwell Health and Cricket Health, and the new company operates under the Interwell Health brand and focuses on renal care.
According to the data, Interwell Health and Cricket Health are both kidney care business providers in the United States, of which Cricket Health is mainly for patients with chronic kidney disease (CKD) and end-stage renal disease (ESRD), providing users with comprehensive kidney disease dialysis care and other services, while providing ** support, including transplantation and conservatism**.
Cricket Health's StagesMar mechanistic Xi and ** glomerular filtration rate (GFR) models are able to identify and risk patients before kidney failure with 96% accuracy, helping to slow disease progression.
Interwell Health has an efficient network of physicians to provide personalized care to patients with kidney disease. The new Interwell Health brand is valued at $2.4 billion and has a total addressable market of $170 billion.
In March this year, Fresenius Medical Care also carried out a strategic layout in China, signing a strategic cooperation agreement with the Hainan Provincial Department of Industry and Information Technology and the Management Committee of Haikou National High-tech Industrial Development Zone. Fresenius Medical Care will implement medical services and medical device related businesses in Haikou step by step and in stages.
In September this year, the Fresenius Kabi Group held a project signing ceremony with the Nanchang Economic and Technological Development Zone, and carried out the fourth capital increase and expansion project of Fresenius Kabi since it settled in the Nanchang Economic and Technological Development Zone. It is reported that the fourth phase of the blood component separator production project of the capital increase will relocate the German production plant of blood apheresis and cell collection equipment to the Economic Development Zone as a whole, and it is expected to increase exports by 100 million yuan per year after all the production is completed.
It can be seen that both Fresenius Medical Care, which has been spun off, and Fresenius Kabi, which is still controlled by the group, attach great importance to the layout of the Chinese market. As the pride of the group, Fresenius Kabi has also become its core business. So, what kind of development will Fresenius Kabi and the rest of the group's businesses usher in in the future, such as the clinic business?We will continue to monitor the coverage.