Fresenius Medical Care returns to Dax 40 Index

Rhea-AI Summary

Fresenius Medical Care (FME), the world's leading provider of kidney disease products and services, will return to Germany's DAX 40 index on December 27, 2024. The DAX 40 represents the 40 largest companies on the Frankfurt Stock Exchange, accounting for 80% of Germany's listed stock market capitalization.

FME has been listed in the Mid-Cap DAX (MDAX) since March 2023, after being a DAX member from September 1999. The company operates 3,732 dialysis clinics, serving approximately 308,000 patients globally, and is a leading provider of dialysis equipment.

Positive

• Return to prestigious DAX 40 index, indicating improved market performance
• Market leadership position with 3,732 dialysis clinics globally
• Large patient base of 308,000 dialysis patients worldwide

Negative

• None.

Insights

Market Research Analyst

The return of Fresenius Medical Care to the DAX 40 index represents a notable achievement in the company's turnaround strategy. Inclusion in Germany's premier stock index enhances FME's visibility to institutional investors and index funds that track the DAX 40, potentially increasing trading volume and liquidity. The move from MDAX to DAX 40 typically triggers automatic buying from passive funds that mirror the index composition.

The timing coincides with FME's successful operational restructuring and cost optimization initiatives. With $13.5B market cap and leadership in the global dialysis market serving 308,000 patients through 3,732 clinics, FME's scale provides competitive advantages in procurement and operational efficiency. For retail investors, DAX 40 membership often correlates with improved stock performance due to increased institutional coverage and enhanced market perception.

In simple terms: Think of this like being promoted from the minor league to the major league in baseball. More people will watch the games (trade the stock) and the team (company) gets access to better resources and opportunities. This validation of FME's turnaround efforts could attract new investors who previously avoided the stock during its MDAX period.

Financial Analyst

The DAX 40 reinstatement signals a important milestone in FME's financial recovery after its March 2023 relegation. Companies must meet strict criteria for market cap and trading volume to qualify for DAX 40 inclusion, making this a quantitative validation of FME's improved market performance. The index change will take effect on December 27, triggering portfolio rebalancing by DAX-tracking funds estimated at billions of euros.

For context, DAX 40 companies represent approximately 80% of the total market capitalization of German listed companies. FME's dual listing on NYSE (FMS) and Frankfurt (FME) provides additional trading liquidity and broader investor access. The company's dominant position in dialysis services and products creates high barriers to entry and recurring revenue streams - critical factors for index stability.

Simply put: This is like getting an "A" on your report card after previously getting a "C". The upgrade shows FME has improved its financial health and market standing significantly. Index funds that follow the DAX 40 will need to buy FME shares, which could support the stock price in the near term.

BAD HOMBURG, Germany, Dec. 20, 2024 /PRNewswire/ -- Fresenius Medical Care (FME), the world's leading provider of products and services for people with kidney disease, will return to the top tier of the German Stock Index, the DAX 40, as of December 27, 2024. The index represents the performance of the 40 largest publicly traded companies listed on the Frankfurt Stock Exchange and accounts for around 80 percent of the market capitalization of listed stock corporations in Germany.

Fresenius Medical Care will return to the top tier of the German Stock Index, the DAX 40, as of December 27, 2024.

Helen Giza, CEO and Chair of the Management Board of Fresenius Medical Care AG, said: "We are delighted to return to the DAX 40. In Germany and worldwide, the index is synonymous with German innovative strength and entrepreneurial growth. This recognition underscores the continuous hard work of our employees for our patients and shareholders and is a strong testament of our performance. Our path had been defined always very clearly to return to the large-cap index by turning around the performance and by successfully executing our strategy. We have delivered what we promised, and we are very happy to be back."

Fresenius Medical Care has been currently listed in the second-largest German stock market index, the Mid-Cap DAX (MDAX), which tracks the 50 largest companies below the DAX 40 since March 2023. Prior to this, the company had been a member of the DAX since September 1999.

About Fresenius Medical Care:
Fresenius Medical Care is the world's leading provider of products and services for individuals with renal diseases of which around 4.1 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,732 dialysis clinics, Fresenius Medical Care provides dialysis treatments for approx. 308,000 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

For more information visit the company's website at www.freseniusmedicalcare.com.

Disclaimer:
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, impacts related to the COVID-19 pandemic results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care does not undertake any responsibility to update the forward-looking statements in this release.

Media contact
Christine Peters
T +49 160 60 66 770
christine.peters@freseniusmedicalcare.com

Contact for analysts and investors
Dr. Dominik Heger
T +49 6172 609 2601 
dominik.heger@freseniusmedicalcare.com

www.freseniusmedicalcare.com

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SOURCE Fresenius Medical Care Holdings, Inc.

FAQ

When will Fresenius Medical Care (FMS) return to the DAX 40 index?

Fresenius Medical Care will return to the DAX 40 index on December 27, 2024.

How long was FMS listed in the MDAX before returning to DAX 40?

FMS was listed in the MDAX since March 2023, after previously being in the DAX from September 1999.

How many dialysis clinics does Fresenius Medical Care (FMS) operate globally?

Fresenius Medical Care operates 3,732 dialysis clinics globally.

How many patients does Fresenius Medical Care (FMS) treat worldwide?

Fresenius Medical Care provides dialysis treatments for approximately 308,000 patients globally.

What percentage of German market capitalization does the DAX 40 represent?

The DAX 40 accounts for approximately 80 percent of the market capitalization of listed stock corporations in Germany.