Fresenius has disclosed intentions to give up control of its dialysis subsidiary Fresenius Medical Care reportedly in response to the pressure built by the US-based Elliott Investment Management.
The move by the German healthcare company is intended to simplify the organisational structure and operations of the kidney dialysis services provider, reported Bloomberg.
According to the publication, Else Kroener-Fresenius Stiftung, which has a controlling stake in the company, has favoured the plans to deconsolidate the dialysis subsidiary.
Originating from a top-to-bottom portfolio review, the divestment plan is intended to simplify Fresenius’ complicated and wide-ranging healthcare businesses, the news agency wrote.
Fresenius CEO Michael Sen began the portfolio review after he took over the role in October last year.
The healthcare company said that key parties have not yet taken a decision on the stake sale and that they are currently examining the proposed action.
Last October, the publication reported that Elliott Investment Management acquired a stake of around 3% in Fresenius. The move by the activist investor was intended to bring in structural changes and the breakup of the healthcare conglomerate.
Currently, Fresenius holds a 32% stake in Fresenius Medical Care, which operates mostly in the US. The latter is involved in offering products and services for individuals with renal diseases along the complete dialysis value chain from a single source.
In April 2022, Fresenius Medical Care North America (FMCNA) secured the US Food and Drug Administration (FDA) 510(k) clearance for its VersiPD Cycler System. The VersiPD system is a portable automated peritoneal dialysis (APD) system.
