Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care: Pure upside or adulterated earnings for the world’s largest dialysis firm?

October 25, 2019

While there is no direct tie between a $231 million bribery settlement by Fresenius and its legally-permissible lobbying, the two major ESG storylines share a theme: “pay to play.” Truvalue timely data capturing public and stakeholder sentiment has special value in exposing risk as it can flag changing societal tolerance of a firm, or industry’s practices.

  • In the case of Fresenius and peers, significant outlays aim to influence politicians, and yet the drumbeat of increasing pressure to regulate is spreading around the country, and across party lines
  • Categories that are top influencers of the Insight score provide a valuable crib sheet for examining ongoing risks the company faces
  • Despite its depressed valuation, Social License to Operate (SLO) concerns for Fresenius, dialysis providers, and the healthcare sector writ large justify a discount beyond business-as-usual
Industry
Health Care Delivery

Material Categories
Access and Affordability
Business Ethics
Management of the Regulatory and Legal Environment