Fresenius Medical Care Launches Value-Based Care Segment, Eyes Growth Through Innovation, Efficiency

Fresenius Medical Care AG FMS on Tuesday introduced a strategic roadmap — FME Reignite — aimed at revitalizing its core business, driving innovation and reshaping its organizational culture.

By 2030, it targets operating income margins in the mid-teens in its Care Delivery and Care Enablement segments and low single-digit margins in Value-Based Care.

The company also announced an expansion of its FME25 cost-savings program, now called FME25+. It aims for 1.05 billion euros ($1.21 billion) in sustainable savings by 2027, reinforcing its profitability goals.

During its first-quarter earnings release, the company confirmed its full-year target of around 180 million euros in additional annual savings, totaling 750 million euros by year-end of 2025.

Another major shift includes the launch of Value-Based Care (VBC) as a standalone reporting segment, which was previously part of the Care Delivery unit.

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The segment focuses on long-term care solutions for chronic kidney disease and end-stage renal disease patients through partnerships with public and private payors.

In 2024, VBC generated 1.8 billion euros in revenue and leverages data integration to improve care quality and lower total medical costs across its 2,200 partner nephrologists.

“We plan to return excess capital to our shareholders through a 30 to 40 percent dividend payout plus the opportunity for regular share buybacks. We will start in 2025 with an initial share buyback of EUR 1 billion within two years,” said Helen Giza, CEO of Fresenius Medical Care.

Fresenius Medical Care shared further details of the upcoming U.S. market launch plan for its 5008X machine at Capital Markets Day. It provides high-volume hemodiafiltration (HVHDF).

With FDA clearance now secured, Fresenius plans a phased launch beginning in 2025 and a full commercial rollout by 2026. The company expects to replace all existing 2008T machines in its U.S. clinics by 2030 and offer HVHDF to all eligible patients.

Clinical evidence from the European CONVINCE study showed the HVHDF treatment led to a 4.4% reduction in mortality over 2.5 years and showed benefits within just three months of use.

Additional real-world data suggest the therapy reduces hospitalizations and improves patient outcomes, potentially decreasing missed treatments.

In May, Fresenius Medical Care reported adjusted earnings of 44 cents per share, beating the consensus of 38 cents. The sales reached $5.13 billion (4.8 billion euros), beating the consensus of $4.74 billion.

FMS Price Action: Fresenius Medical Care stock is down 4.48% at $27.21 at publication on Tuesday.

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Photo: Courtesy Fresenius Medical