07.27.07
$2.8 Billion ($8.5B Total)
Key Executives:
Dr. Ben Lipps, Chairman and CEO
Lawrence Rosen, CFO
Roberto Fusté, CEO, Asia-Pacific
Dr. Emanuele Gatti, CEO, Europe, Latin America, Middle East and Africa.
Rice Powell, Co-CEO, North America, and President, Products & Hospital Group
Mats Wahlstrom, Co-CEO, North America and President, Services Division
No. of Employees: 56,803
World Headquarters: Bad Homburg, Germany
For fiscal year 2006, Fresenius Medical Care set an ambitious goal of reaching the $8 billion mark in revenues. With $6.8 billion in revenue for 2005, there was still quite a bit of work to be done for the provider of dialysis products and services.
But by the end of the fiscal year, the company had reached its goal and then some. For FY 2006, Fresenius reported $8.5 billion, a significant 26% increase. Net income also increased by double digits—18%—to $537 million. In addition, the company reached another milestone in 2006: its 10th anniversary.
Revenue from dialysis products, which account for 25% of the company’s overall revenue, reached $2.8 billion in fiscal 2006, including revenue from its own dialysis clinics.
The global dialysis market grew by approximately 5% to $55 billion in 2006, and the dialysis product market reached a value of $9 billion, according to Fresenius. The company reported that the three largest suppliers of dialysis products hold a worldwide market share of nearly 70%. Fresenius claims a 30% market share, followed by Baxter with 22% and Gambro with 15%.
For Fresenius, both its North America (which accounts for 71% of the company’s revenue) and international markets contributed to strong performance. Growth in North American revenue was “above average,” according to the company—mostly due to the acquisition of the Renal Care Group in Nashville, TN in March for $3.5 billion. With the additional dialysis centers under its belt, the company saw revenue form North America jump 32% to $6 billion. International revenue grew 13% to $2.7 billion. Worldwide, Fresenius had 2,108 clinics in 2006 (1,680 in 2005), serving approximately 163,517 patients (131,450 in 2005).
On the product side, much of the growth is attributed to demand for the Optiflux series and 2008K dialysis machines. Both machines, the company said, were designed specifically to meet the needs of its largest single market—the United States. In July 2006, Fresenius’ North American division dodged a legal bullet for the 2008 series of devices when a jury in Oakland, CA ruled that the company did not infringe on four patents from Baxter International. Baxter was seeking $87 million in damages from Fresenius for patent infringement associated with the 2008K hemodialysis machine and an injunction barring Fresenius from continued selling of the machine.
Going forward, the company said it plans to “significantly expand” its dialyzer production facilities in the United States within the next two years, adding production lines to its facility in Ogden, UT. Fresenius already has set into motion plans to increase from 27 million to 34 million dialyzers annually at its Ogden facility.
Due to some of its recent success and readjusted market projections, Fresenius has bumped up its goal for the end of the decade. The company now expects to generate revenue of $11.5 billion by 2010, up from the $10 billion it previously had predicted. In the near term, Fresenius is hoping for revenue of $9.4 billion this year, which would be an increase of 11% compared to 2006. Net income is expected to be between $675 million and $695 million, an increase of 26% to 29%.
So far for 2007, the company seems to be on target. Net revenue for the first quarter, compared to the first quarter a year ago, increased by 33% to $2.3 billion, and dialysis product revenue increased by 18% to $560 million. North America revenue showed significant growth for the quarter, up 37% to $1.6 billion. Much of the growth remains fueled by continued strong sales of the 2008K hemodialysis machines, the company said.
“The advantages of being the world’s only vertically integrated dialysis provider are increasingly evident as we compete in the global marketplace,” said Ben Lipps, CEO, describing the company’s recent financial performance.
Key Executives:
Dr. Ben Lipps, Chairman and CEO
Lawrence Rosen, CFO
Roberto Fusté, CEO, Asia-Pacific
Dr. Emanuele Gatti, CEO, Europe, Latin America, Middle East and Africa.
Rice Powell, Co-CEO, North America, and President, Products & Hospital Group
Mats Wahlstrom, Co-CEO, North America and President, Services Division
No. of Employees: 56,803
World Headquarters: Bad Homburg, Germany
For fiscal year 2006, Fresenius Medical Care set an ambitious goal of reaching the $8 billion mark in revenues. With $6.8 billion in revenue for 2005, there was still quite a bit of work to be done for the provider of dialysis products and services.
But by the end of the fiscal year, the company had reached its goal and then some. For FY 2006, Fresenius reported $8.5 billion, a significant 26% increase. Net income also increased by double digits—18%—to $537 million. In addition, the company reached another milestone in 2006: its 10th anniversary.
Revenue from dialysis products, which account for 25% of the company’s overall revenue, reached $2.8 billion in fiscal 2006, including revenue from its own dialysis clinics.
The global dialysis market grew by approximately 5% to $55 billion in 2006, and the dialysis product market reached a value of $9 billion, according to Fresenius. The company reported that the three largest suppliers of dialysis products hold a worldwide market share of nearly 70%. Fresenius claims a 30% market share, followed by Baxter with 22% and Gambro with 15%.
For Fresenius, both its North America (which accounts for 71% of the company’s revenue) and international markets contributed to strong performance. Growth in North American revenue was “above average,” according to the company—mostly due to the acquisition of the Renal Care Group in Nashville, TN in March for $3.5 billion. With the additional dialysis centers under its belt, the company saw revenue form North America jump 32% to $6 billion. International revenue grew 13% to $2.7 billion. Worldwide, Fresenius had 2,108 clinics in 2006 (1,680 in 2005), serving approximately 163,517 patients (131,450 in 2005).
On the product side, much of the growth is attributed to demand for the Optiflux series and 2008K dialysis machines. Both machines, the company said, were designed specifically to meet the needs of its largest single market—the United States. In July 2006, Fresenius’ North American division dodged a legal bullet for the 2008 series of devices when a jury in Oakland, CA ruled that the company did not infringe on four patents from Baxter International. Baxter was seeking $87 million in damages from Fresenius for patent infringement associated with the 2008K hemodialysis machine and an injunction barring Fresenius from continued selling of the machine.
Going forward, the company said it plans to “significantly expand” its dialyzer production facilities in the United States within the next two years, adding production lines to its facility in Ogden, UT. Fresenius already has set into motion plans to increase from 27 million to 34 million dialyzers annually at its Ogden facility.
Due to some of its recent success and readjusted market projections, Fresenius has bumped up its goal for the end of the decade. The company now expects to generate revenue of $11.5 billion by 2010, up from the $10 billion it previously had predicted. In the near term, Fresenius is hoping for revenue of $9.4 billion this year, which would be an increase of 11% compared to 2006. Net income is expected to be between $675 million and $695 million, an increase of 26% to 29%.
So far for 2007, the company seems to be on target. Net revenue for the first quarter, compared to the first quarter a year ago, increased by 33% to $2.3 billion, and dialysis product revenue increased by 18% to $560 million. North America revenue showed significant growth for the quarter, up 37% to $1.6 billion. Much of the growth remains fueled by continued strong sales of the 2008K hemodialysis machines, the company said.
“The advantages of being the world’s only vertically integrated dialysis provider are increasingly evident as we compete in the global marketplace,” said Ben Lipps, CEO, describing the company’s recent financial performance.