U.S. dialysis volumes to rebound despite GLP-1 impact

Fresenius Medical Care (NYSE:FMS) expects U.S. dialysis volumes to bounce back this year after a COVID-era slump, its CEO Helen Giza says, even as obesity drugmaker Novo Nordisk (NVO) is closing in on the renal care market with its GLP-1 agonist, Ozempic.

Her remarks came days after the German health services provider reported better-than-expected earnings with its Q1 2024 results, thanks partly to cost savings from a range of portfolio optimization programs.

During the pandemic, a spike in COVID-related deaths among its patients hurt Fresenius (FMS), which operates in the U.S. dialysis market alongside its peers DaVita (NYSE:DVA), Outset Medical (OM), and Baxter International (BAX).

“This year, I’m pleased to say we anticipate U.S. treatment volumes to rebound from a subdued pandemic era by 0.5 to 2 percent by the end of 2024, keeping us on track to a return to pre-pandemic levels of 2 to 3 percent by the end of 2025,” Giza said as part of a speech she prepared for the company’s Annual General Meeting next week.

Dialysis-related stock including Fresenius (FMS) tumbled in mid-October after Novo (NVO) announced its decision to end a renal impairment trial for its weight loss therapy semaglutide, citing early evidence of efficacy.

Later, Fresenius (FMS) ruled out any impact, arguing that despite the potential benefits of GLP-1s in slowing kidney disease progression and improving overall survival, the company will benefit from providing long-term care for those patients.