F&C tips dialysis specialist DaVita Healthcare Partner for long term

18th June 2013

The healthcare market offers investment opportunities driven by R&D but also increasing access to healthcare in emerging markets notably China, Brazil and India says investment firm F&C.

In a note issued today F&C’s Stewardship International team suggests that DaVita Healthcare Partners which provides dialysis to patients suffering from end-stage renal disease (ESRD) is one such investment.

The note says that “the company has benefitted from structural growth due to the increasing incidence of diabetes and decreasing death rates of patients as their treatment has improved. Options for these patients are limited given that the only alternative to long term treatment is a kidney transplant.”

F&C adds that the recent acquisition of Healthcare Partners, the doctor-network operator by DaVita in 2012 has given the company a strong physician practice platform to benefit from Medicare reimbursement changes and to offer solutions to payers looking for cost efficiencies. Healthcare Partners’ acquisition diversifies the business into managed healthcare and could give further upside.”

 

 

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