FMC slips after new US kidney-care strategy

By Reuters News

** Shares in dialysis provider Fresenius Medical Care FMEG.DE slip around 2% to the bottom of Germany's blue-chip DAX index .GDAXI

** A local trader flags a new US kidney-care strategy announced by the Department of Health and Human Services on Tuesday

** Berenberg analyst Harry Gillis notes the plan is critical to FMC and its US competitor DaVita DVA.N, highlighting potential scrutiny of nephrologist partnerships, Medicare Advantage pricing and charities that help pay patients' insurance premiums

** "Nothing changes today, but the market is reacting to a longer-term risk to profitability," Gillis says

** Metzler analyst Victor Beyer says the plan could create uncertainty around FMC's future market share and reimbursement environment

** FMC welcomed the initiative, saying in a statement that its focus on innovation, home dialysis and transplantation aligns with its strategy

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk