- Fresenius Medical Care (FMS, Financial) launches FME Reignite strategy to boost profitability and innovation.
- Plans to achieve mid-teens operating income margins by 2030 with a EUR 1 billion share buyback program.
- The introduction of the 5008X dialysis machine in the U.S. aims to set a new standard of care.
Fresenius Medical Care (FMS) has announced its new FME Reignite strategy, aiming to enhance value creation through operational excellence, growth and innovation, and cultural development. This ambitious plan is set to achieve mid-teens operating income margins by 2030 while focusing on shareholder returns through a 30-40% dividend payout and a EUR 1 billion share buyback program over two years starting in 2025.
The strategy includes several key initiatives such as the U.S. launch of the 5008X dialysis machine, which utilizes high-volume hemodiafiltration (HVHDF) technology. Clinical studies have shown it results in 4.4% fewer deaths over 2.5 years, marking a significant improvement in patient care standards. The company plans to replace existing machines in its U.S. clinics with the 5008X by 2030.
Fresenius Medical Care also plans to expand its FME25+ savings target from EUR 750 million to EUR 1.05 billion by 2027. This aims to optimize operational efficiency while maintaining a strong emphasis on innovation and market leadership in dialysis care. Additionally, the company will invest EUR 0.8 to 1.0 billion annually in core business growth.
To enhance financial transparency, Value-Based Care will emerge as a separate operating segment, with EUR 1.8 billion revenue expected in 2024. This move highlights Fresenius' commitment to integrating value-based care into its offerings, leveraging data and innovation to improve patient outcomes at lower costs.
With the global dialysis patient population projected to grow 90% to 7 million by 2035, Fresenius Medical Care is positioning itself to capitalize on this expanding market, while bolstering financial returns and operational efficacy.
