FMC sees higher earnings in 2024, says few patients on GLP-1s, ET HealthWorld

[ad_1]


New Delhi: German dialysis specialist Fresenius Medical Care on Tuesday announced higher guidance for 2024 in a fourth-quarter earnings report which topped market expectations, helped by a turnaround plan and a one-off settlement.

“Based on the turnaround progress achieved last year, we have a strong foundation to build on to make 2024 a year of accelerated profitable growth,” CEO Helen Giza said, adding that the firm will continue divestments this year.

Earnings for FMC, the world’s biggest dialysis provider, are recovering after they were hit during the pandemic.

“Without this settlement, adjusted earnings would not have grown in FY23. The focus will be on FY24 where expectations were likely higher following DaVita’s release last week,” JPM analysts said.

U.S. peer Da Vita on Tuesday gave a 2024 outlook above expectations seeing strong demand for dialysis during the year.

Shares in FMC rose around 5 per cent after the market opened, but reversed course and were trading flat by 1034 GMT.

With 2024 guidance largely in line with consensus estimates, we expect the stock to be flat today,” Bernstein analyst Lisa Bedell Clive said.

While the October-December patient volumes were slightly lower quarter-on-quarter due to missed treatments around Christmas, Barclays analysts said, citing the company.

GLP-1 IMPACT

When asked about the impact of GLP-1 diabetes and weight-loss drugs on earnings, Giza said this could potentially bring more patients to FMC given these drugs provide cardiovascular protection.

While past trials have shown that GLP-1 drugs could slow the progression of chronic kidney disease, overall survival was also prolonged, potentially keeping patients in FMC’s care for longer.

“On the flip side, we do see that this test of drugs is likely to delay the onset to the end-stage renal disease,” she added.

Giza said that as of today, only about 5 per cent of FMC’s patients are using GLP-1 drugs, a number that is increasing at “a very, very small, small rate”.

  • Published On Feb 20, 2024 at 11:49 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETHealthworld App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *