07.27.10
26. Fresenius Medical Care
$2.9 Billion ($11.3B total)
KEY EXECUTIVES:
Ben J. Lipps, CEO and Chairman
Rice Powell, CEO for North America and Deputy Chairman
Mike Brosnan, Chief Financial Officer
Kent Wanzek, Director of Global Production
Roberto Fusté, CEO, Asia/Pacific
Dr. Emanuele Gatti, CEO, Europe, Middle East, Africa, Latin America
NO. OF EMPLOYEES: 68,000 (total)
GLOBAL HEADQUARTERS: Bad Homburg, Germany
Despite the economic conditions of 2009, Fresenius Medical Care continued to make gains. The company boasted a healthy 32 percent share of the worldwide market for dialysis products—the firm manufactures dialysis products and solutions in addition to owning dialysis care centers around the globe. The worldwide market for dialysis products and services is approximately $65 billion. At the end of fiscal 2009, Fresenius operated more than 2,500 centers worldwide, treating more than 195,000 patients.
The company reported 6 percent growth for fiscal 2009 to reach $11.3 billion in sales for the year, and an even more impressive 9 percent growth of net income to $891 million. Most of the growth—around 8 percent, in fact—was organic, Fresenius officials reported.
For dialysis products alone, overall growth was pretty flat—up approximately 1 percent to $2.89 billion (about 26 percent of overall revenue) from $2.87 billion in 2008. Product sales in North America were strong, up 8 percent to $818 million, while international sales fell 2 percent to $2.1 billion.Worldwide economic conditions and global reimbursement challenges contributed to the flat performance.The key dialysis products offered include dialyzers and hemodialysis machines. The three largest manufacturers of dialysis products—of which Fresenius claims to be the largest—accounted for 70 percent of the global market. Baxter and Gambro are the next closest in size. Fresenius manufactured about 85 million dialyzers in 2009. To help fuel much of its product growth, the company pumped $14 million more into research and development activities in 2009 compared to the previous year, for a total of $94 million.
On the management front, in March 2009, Lawrence Rosen resigned as chief financial officer (CFO) to pursue “other opportunities outside the company,” according to a release at the time. He was with the company for nearly six years. Michael Brosnan was promoted to CFO in January this year. For the past seven years, he was CFO and a member of the board of directors of Fresenius Medical Care North America. He joined the company in 1998 as vice president of Finance and Administration for Spectra Renal Management, which was purchased by Fresenius in 1997.
In another notable management change, Kent Wanzek was given responsibility for the company’s global products manufacturing operations. He has been the president for Operations of the Renal Therapies Group at Fresenius Medical Care North America since 2006. Prior to joining the company in 2003, Kent had several senior executive positions including Philips Medical Systems and Baxter Healthcare Corporation.
So far, for 2010, the company showed a heavy appetite for acquisition. The company agreed to purchase a chain of dialysis clinics in Russia. The move will add $25 million in annual revenue, official predicted. The company also acquired Asia Renal Care Ltd. The move should add $80 million to the company’s bottom line. Founded in 1997, Asia Renal Care has since become the second largest provider of dialysis and related services in the Asia-Pacific region (behind Fresenius Medical Care). Asia Renal Care operates more than 100 clinics throughout Asia treating about 6,200 patients. The number of dialysis patients in the region is forecast to grow to more than 1 million within the next five years.
$2.9 Billion ($11.3B total)
KEY EXECUTIVES:
Ben J. Lipps, CEO and Chairman
Rice Powell, CEO for North America and Deputy Chairman
Mike Brosnan, Chief Financial Officer
Kent Wanzek, Director of Global Production
Roberto Fusté, CEO, Asia/Pacific
Dr. Emanuele Gatti, CEO, Europe, Middle East, Africa, Latin America
NO. OF EMPLOYEES: 68,000 (total)
GLOBAL HEADQUARTERS: Bad Homburg, Germany
Despite the economic conditions of 2009, Fresenius Medical Care continued to make gains. The company boasted a healthy 32 percent share of the worldwide market for dialysis products—the firm manufactures dialysis products and solutions in addition to owning dialysis care centers around the globe. The worldwide market for dialysis products and services is approximately $65 billion. At the end of fiscal 2009, Fresenius operated more than 2,500 centers worldwide, treating more than 195,000 patients.
The company reported 6 percent growth for fiscal 2009 to reach $11.3 billion in sales for the year, and an even more impressive 9 percent growth of net income to $891 million. Most of the growth—around 8 percent, in fact—was organic, Fresenius officials reported.
For dialysis products alone, overall growth was pretty flat—up approximately 1 percent to $2.89 billion (about 26 percent of overall revenue) from $2.87 billion in 2008. Product sales in North America were strong, up 8 percent to $818 million, while international sales fell 2 percent to $2.1 billion.Worldwide economic conditions and global reimbursement challenges contributed to the flat performance.The key dialysis products offered include dialyzers and hemodialysis machines. The three largest manufacturers of dialysis products—of which Fresenius claims to be the largest—accounted for 70 percent of the global market. Baxter and Gambro are the next closest in size. Fresenius manufactured about 85 million dialyzers in 2009. To help fuel much of its product growth, the company pumped $14 million more into research and development activities in 2009 compared to the previous year, for a total of $94 million.
On the management front, in March 2009, Lawrence Rosen resigned as chief financial officer (CFO) to pursue “other opportunities outside the company,” according to a release at the time. He was with the company for nearly six years. Michael Brosnan was promoted to CFO in January this year. For the past seven years, he was CFO and a member of the board of directors of Fresenius Medical Care North America. He joined the company in 1998 as vice president of Finance and Administration for Spectra Renal Management, which was purchased by Fresenius in 1997.
In another notable management change, Kent Wanzek was given responsibility for the company’s global products manufacturing operations. He has been the president for Operations of the Renal Therapies Group at Fresenius Medical Care North America since 2006. Prior to joining the company in 2003, Kent had several senior executive positions including Philips Medical Systems and Baxter Healthcare Corporation.
So far, for 2010, the company showed a heavy appetite for acquisition. The company agreed to purchase a chain of dialysis clinics in Russia. The move will add $25 million in annual revenue, official predicted. The company also acquired Asia Renal Care Ltd. The move should add $80 million to the company’s bottom line. Founded in 1997, Asia Renal Care has since become the second largest provider of dialysis and related services in the Asia-Pacific region (behind Fresenius Medical Care). Asia Renal Care operates more than 100 clinics throughout Asia treating about 6,200 patients. The number of dialysis patients in the region is forecast to grow to more than 1 million within the next five years.