Trump executive order a boon for major dialysis providers

President Donald Trump's July 10 executive order to transform the U.S. kidney care market was good news for major dialysis providers Fresenius Medical Care and DaVita Kidney Care.

Together, Fresenius and DaVita control most of the U.S. dialysis market — estimated between 70 and 80 percent.

The news of a pending order from the Trump administration on July 9 originally sunk the dialysis providers' stocks by 5 percent, but this drop was offset when the initiative was revealed the following day, according to CNBC. Shares of DaVita bounced back 4 percent and Fresenius experienced a more modest rebound of 2.5 percent, according to the report.

CEOs of both companies issued statements of support for the executive order, which prioritizes moving dialysis treatments into the home. DaVita CEO Javier Rodriguez said the company is the largest home dialysis provider in the U.S. Fresenius has also made an investment in this space, with its recent acquisition of NxStage, a home hemodialysis machine manufacturer.   

 

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