Full Press Release Details
| Investor News | Fresenius Medical Care AG & Co. KGaA Investor Relations Else-Kr ner-Str. 1 D-61352 Bad Homburg | |
| Contact: | ||
| Oliver Maier | ||
| Phone: | + 49 6172 609 2601 | |
| Fax: | + 49 6172 609 2301 | |
| E-mail: | ir@fmc-ag.com | |
| North America: | ||
| Terry L. Morris | ||
| Phone: | + 1 800 948 2538 | |
| Fax: | + 1 615 345 5605 | |
| E-mail: | ir@fmc-ag.com | |
| Internet: www.fmc-ag.com | ||
| November 29, 2007 |
Fresenius Medical Care Acquires Renal Solutions, Inc.
Medical Care acquires technology to advance home hemodialysis and
create a platform for development of a wearable kidney.
Medical Care AG & Co. KGaA today
announced that it has acquired Renal Solutions, Inc. (RSI). The acquisition
agreement provides for total consideration of up to $190 million, consisting of
$100 million at closing, $60 million after the first year, and up to $30
million in milestone payments over the next three years. RSI had approximately
$10 million of net debt outstanding at closing.
is currently commercializing the Allient Sorbent Hemodialysis System, which is
returning sorbent-based technology (SORB) to the dialysis field. The SORB
cartridge has a long market history in hemodialysis with over 6 million
cartridges sold. As the innovator in the SORB technology field, RSI holds key
patents and other intellectual property worldwide related to the SORB
sorbent technology purifies tap water to dialysate quality and allows dialysate
to be regenerated. This reduces the water volume requirement for a typical
hemodialysis treatment from 120 liters / 37 gallons of reverse osmosis water to
just 6 liters / 1.5 gallons of drinking water per treatment.
combination of Fresenius Medical Care s leading hemodialysis technology and the
SORB technology will provide a platform for superior home products and
therapies. Furthermore, the significant reduction of dialysate through SORB
technology is one major step towards miniaturization a pre-requisite for the
wearable kidney concept which could benefit certain patients and complement
clinical-based therapy.
Medical Care sees the current market size of the Home Therapy Market
(Peritoneal Dialysis and Home Hemodialysis) at about $2 billion representing
approximately 11% of the overall worldwide dialysis market. The Company
believes the Home Therapy market has the potential to grow to $4 billion within
the next 10 years. Fresenius Medical Care has a market share in this market
segment of approximately 30%. Home hemodialysis (HHD)
has been a niche market for many years but with growing attention in recent
past. With increased access to adequate therapy, the Company projects the
number of HHD patients in North America could grow from about 0.5% at the end
of 2006 to approximately 4% of the patient population in the next
Ben Lipps, Chief Executive Officer of Fresenius Medical Care commented, The
acquisition of RSI is an important step to advance the technology required for
strong future growth in this field. The combination offers us the long-term
opportunity to extend our leadership to home and acute dialysis products.
Furthermore, by combining our equipment and membrane technology with the SORB
technology, we can provide innovative solutions in the future such as a
possible wearable kidney. With this acquisition, Fresenius Medical Care expects
to increase its annual R&D spending by approximately $10 million starting
in 2008. Our mid-term financial targets for the years 2007 through 2010 remain
Medical Care is the world s largest integrated provider of products and
services for individuals undergoing dialysis because of chronic kidney failure,
a condition that affects more than 1,500,000 individuals worldwide. Through its
network of 2,221 dialysis clinics in North America, Europe, Latin America,
Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to
172,227 patients around the globe. Fresenius Medical Care is also the world s
leading provider of dialysis products such as hemodialysis machines, dialyzers
and related disposable products. Fresenius Medical Care is listed on the
Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS,
For more information about
Fresenius Medical Care visit the Company s website at www.fmc-ag.com.
For more information about
Renal Solutions Inc. visit the Company s website at www.renalsolutionsinc.com.
This release contains forward-looking
statements that are subject to various risks and uncertainties. Actual results
could differ materially from those described in these forward-looking
statements due to certain factors, including uncertainties in the development
of the home dialysis market, the ability to develop and commercialize
technological innovations, changes in business, economic and competitive
conditions, regulatory reforms, foreign exchange rate fluctuations,
uncertainties in litigation or investigative proceedings, and the availability
of financing. These and other risks and uncertainties are detailed in Fresenius
Medical Care AG & Co. KGaA s reports filed with the U.S. Securities and
Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not
undertake any responsibility to update the forward-looking statements in this