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)