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Fresenius Medical Picks Up Majority
Stake In Taiwanese Dialysis Firm
Fresenius Medical Care AG & Co. KGaA continues to expand in Asia. The
company announced the acquisition of a 51 per cent equity interest in Jiate
Excelsior Co. Ltd. (Excelsior) in Taiwan. With a market share of approximately
14 percent Excelsior is the largest dialysis service provider in Taiwan treating
over6,500 hemodialysis patients in 90 clinics.
The transaction is expected to add about $84 million to the consolidated
revenues and to be accretive to the company's earnings for 2007. The purchase
price for the 51 percent equity interest in Excelsior will be $38 million. The
acquisition will be subject to the approval of the Taiwan government Investment
Committee, a Fresenius press release said.
At the end of 2005 there were nearly 45,000 End Stage Renal Disease (ESRD)
patients in Taiwan. The country has experienced approximately 6 per cent growth
in patients in recent years with a prevalence rate (patients per one million
population) of over 1,900 - the second - highest worldwide.
After the closing of the acquisition, Fresenius Medical Care's share in the
number of treated patients in Taiwan will increase from 4 per cent to
approximately 18 per cent.
Through the transaction, Fresenius Medical Care will become the leading dialysis
provider in the Asia-Pacific region and will provide dialysis services to more
than 10,000 patients.
Ben Lipps, chief executive officer of Fresenius Medical Care, commented : "we
are very pleased to further expand our strong product and services base in Asia.
We now have achieved leadership in products and services in all of our key
global regions."
Jiate Excelsior Co. Ltd. (Excelsior) was established in 1998 with the
headquartered in Taipei and is wholly owned by Enfield Medical Co. Ltd.
Excelsior is the largest dialysis provider in Taiwan treating more than 6,500
patients at the end of 2006 in approximately 90 dialysis centres. The company
operates and manages dialysis units in hospitals as well as stand-alone clinics.
Excelsior has a market share of approximately 14 per cent in Taiwan.
Fresenius Medical Care is the world's largest integrated provider of products
and services for individuals under going dialysis because of chronic kidney
failure, a condition that affects more than 1,400,000 individuals worldwide.
Through its network of 2,085 dialysis clinics in North America, Europe, Latin
America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis
treatment to 161,433 patients around the globe.
(Ref : Chronicle Pharmabiz dated January 18, 2007)
The Corporate Healthcare
Segment May Replicate The Success Of The Indian IT Sector, Say Experts
The corporatisation of the Indian hospital sector has begun in a big
way. Well known corporates such as Escorts and Apollo are already in
expansion mode.
With corporate chains expected to garner over 20 per cent of the
advance healthcare business of urban India, even first generation
players are lining up to enter the lucrative sector : Birla, Reliance
and Paras are some of the names eyeing the hospital segment.
Existing players such as Apollo, Escorts, Fortis, Max and Wockhardt
are strengthening their presence through capacity expansions,
greenfield projects and acquisitions of mid-sized and big hospitals.
International hospital chains like Columbia Asia are also planning to
enter the Indian healthcare business.
According to industry watchers, each corporate group is in the process
of identifying its core strength in the hospital business, thereby
creating niche areas of operations. The move is triggered by the
growth in the GDP, emergence of health insurance and the expected
growth in medical tourism.
"The growth of professional healthcare managers in an indication of
this changing trend. The number of universities and institutions
offering management courses in healthcare is increasing. The sudden
growth of hospital chains will required qualified and trained human
resources," says Vivek Shukla, a health consultant.
The entry of private players in health insurance, the possibility of
India becoming a healthcare destination for patients from developed
nations and innovative marketing models adopted by corporate hospitals
are all contributing to the success, experts says.
The corporate healthcare segment may replicate the success of the
Indian IT sector. The healthcare sector is getting more organized. Ten
years from now, 30-40 percent of tertiary healthcare delivery could
come from the corporate sector, says Vishal Bali, CEO, Wockhardt
Hospitals.
"India's strength today is its huge clinical acumen. It has developed
into a quality healthcare destination. A replication of what we have
done in IT is to happen in the healthcare sector, as the demand supply
gap in the organized healthcare segment is huge," adds Bali. Health
insurance could be a big driver of healthcare services in the country.
Only 10 percent of medicare is covered by health insurance today, and
even there, 7 per cent is the penetration of private health insurers.
Corporates expect a huge shift in this share and the entire growth
that comes from the health insurance segment is expected to benefit
corporate hospitals.
(Ref : Business Standard, Trivendrum dated February 15, 2007) |
