Fresenius Medical Care is letting it be known that it wants to have a stronger presence in China, one of the fast-growing emerging markets. Last week the Bad Homberg, Germany-based company announced a ton of acquisitions and investments in dialysis centers and renal hospitals in China.
Here’s the breakdown:
The company acquired a 70% share of Guangzhou KangNiDaiSi Medical Investment Co., Ltd, which focuses on dialysis and related chronic disease services. KangNiDaiSi has three independent hemodialysis centers under construction in the cities of Guangzhou and Zhaoqing in Guangdong province, which borders Hong Kong in southeast China. A proposed fourth center in Guangzhou awaits government approval.
Fresenius also acquired a 55% stake in Henan Aishen Hospital Management Co. Ltd (Henan Aishen) and Aishen Beijing Hospital Management (Aishen Beijing). Henan Aishen and Aishen Beijing are building 13 dialysis centers and a grade I renal hospital to complement the dialysis care network that will cover Henan, Shandong, Guangdong and Hainan provinces.
There are further plans to expand into new locations in the future. In addition, the company has taken a 60% share of Daqing Kangda Dialysis Center Co., Ltd in Heilongjiang province.
Fresenius’ plans to be more aggressive in the China market come during the same time the company said there could be stagnate profits in 2019and that profit targets for 2020 would probably not be met. As a result shares dropped 17.71%.
The plans also come around the same time a Delaware Court ruled that Fresenius had the right to pull out of its $4.3 billion merger with pharma firm Akorn.