NN&I - April 2010
Business 14 Nephrology News & Issues April 2010www.nephronline.com Fresenius doubles acquisition budget, buys National Vascular CareFresenius Medical Care AG doubled its budget for acquisi-tions to as much as $400 million for 2010 as pressure on health costs presents opportunities for deals at attractive prices, chief executive officer Ben Lipps said in February. And on March 5, the company stood by its word, as it acquired National Vascular Care Inc., through the Fresenius subsidiary U.S. Vascular Access Holdings LLC.Based in Rosemont, Penn., National Vascular Care is a provider of vascular access services. At the time of purchas,e it had six access centers in six states around the country. The combined companies will operate under the name Fresenius Vascular Care and provide services at 12 vascu- lar access centers and to more than 15 physician practices. Ronald Rodgers, co-founder and CEO of National Vascular Care, will serve as president of Fresenius Vascular Care. "We believe that the system's demand for efficiency will continue driving the shift in these types of procedures from hospital settings to outpatient surgery centers, deliv -ering the corresponding benefits of ease of use for physi- cians combined with a lower overall cost for payers," said Compiled by Thomas KeatingWilliam Valle, senior vice president of Fresenius Medical Care North America.German-based Fresenius Medical may split the $400 mil-lion available for acquisitions in and outside the United States, Lipps said in a Feb. 24 Bloomberg article. The health care provider did not do acquisitions much last year "because expectations were too high," Lipps said. "We have a long list of people who would like us to buy them. We're not a predator. We're not interested in forcing anyone. It's strictly a matter of opportunity."Fresenius Medical is targeting a profit increase of as much as 10% this year after a rise in treatment revenue bolstered 2009 earnings. A Medicare. plan to introduce a bundled pricing system in 2011 to cap fees for dialysis at about $250 for each treatment for Medicare patients "will be neutral for us over time," Lipps said. "Drug costs should fall, which improves dialysis margins," Jack Scannell, a London-based analyst for Sanford C. Bernstein Ltd., wrote in a note to Fresenius investors. "It also appears that bundled pricing will be much more challenging for the small independent clinics. This may allow low-cost acquisitive growth for Fresenius." Stocks in the NewsA closer look at three publicly-traded anemia drug companies Information is solely for news purposes, not for advice on making trade decisions.A new study said Amgen's anemia drugs Epogen and Aranesp were associated with a lower risk of death among elderly dialysis patients with severe anemia, but were associated with a higher risk of death among patients with less severe anemia. Worldwide sales of Aranesp have seen a two-year decline over safety concerns and reimbursement restrictions. Biotechnology company Affymax Inc. has received a $5 million milestone payment from Takeda Pharmaceutical Co. for the development of Hematide, a potential anemia treatment. Affymax in January completed treatment and follow-up of patients enrolled in the four-trial, Phase 3 clinical program for Hematide in the U.S. The company expects to report results from these trials in the second quarter of 2010. A federal court let stand a ban on the U.S. sale of Roche's Mircera, a rival to Amgen's blockbuster anemia drugs, until 2014. Roche missed full-year profit forecasts due to disappointing sales of key cancer drugs. The Swiss drugmaker confirmed its outlook for 2010 of double-digit earnings growth but said sales would rise at a mid-single-digit rate.Amgen, Inc. (AMGN)Affymax, Inc. (AFFY) 62 45 24 55 40 19 Oct.15 Nov.16 Dec.15 Jan.15 Feb.15 Mar.15 Oct.15 Nov.16 Dec.15 Jan.15 Feb.15 Mar.15 Oct.15 Nov.16 Dec.15 Jan.15 Feb.15 Mar.15 $61.83 $40.51 $23.98 $56.14 $40.30 $20.24 $56.48 $41.50 $19.86 $55.75 $40.85 $22.97 $56.25 $44.96 $22.94 $56.89 $41.25 $20.98Roche Holding Ltd. (RHHBY)42.5 Business0410_5.indd 14 3/19/10 11:44:33 AM
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