Fresenius outlines plans to expand extracorporeal care portfolio to hearts, lungs

Dialysis giant Fresenius Medical Care has laid out a new five-year strategy to further expand the reach of its business beyond kidney disease by offering a portfolio of intensive care support products for failing hearts, lungs and other organs.

During a virtual capital markets day, the company’s management also outlined plans to strengthen the connections between its various treatments spanning renal care to better address each point along the course of both chronic and acute illness.

This includes the development of new therapies using digital technologies, artificial intelligence and big data as well as the use of personalized medicine and home-based care. 

In addition, Fresenius plans to move forward with its yearslong transition from a fee-for-service payment model to a value-based care scheme linked to patient outcomes and performance—and not just in dialysis treatments, but in kidney transplantation as well.

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A third area in the company’s plan includes expanding its network through acquisitions, partnerships and investments in early-stage startups.

“The new strategy is our next logical step,” CEO Rice Powell said in the company’s announcement. “It’s the next step up from our four core competencies, it’s a step up for our network—and it’s a step in our quest for even more valuable solutions for our patients as well as for payors and health care systems around the world.”

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Fresenius pointed to how both kidney replacement therapy and supporting respiratory function are vital in the critical care of patients with COVID-19. Under its Xenios division, the company offers extracorporeal therapies for lung failure that strip out carbon dioxide from the bloodstream and deliver oxygen.

By 2025, the company said it expects to see annual mid-single-digit percentage increases in revenue, alongside upper-single-digit percentage increases in net income and about a 7% return on invested capital, as it adapts to the new normal after COVID-19.