What happened
Shares of Fresenius Medical Care (FMS -0.54%) were up more than 11% for the week as of Friday at 1:30 p.m. ET, according to data provided by S&P Global Market Intelligence. The German healthcare company's stock is up more than 60% so far this year.
So what
Fresenius Medical is the world's leading provider of products and services to treat kidney diseases. The company operates 4,060 dialysis clinics, serving roughly 343,000 patients across the world.
This week, the company's shareholders approved the conversion of the company from a legal partnership determined by shares to a German stock corporation, a more simplified stock corporation.
The restructuring includes four shareholders on the supervisory board, led by Michael Sen as its chairman. The company said the conversion is expected to be completed by the end of 2023. The hope for Fresenius is that the structure will allow for more efficient decision-making, giving Fresenius Medical more flexibility regarding its finances.
As part of the restructuring, the company announced on Monday that Martin Fischer will take over as chief financial officer on Oct. 1. He succeeds Helen Giza, who was named late last year as CEO and chairwoman of the management board.
Now what
Fresenius Medical saw revenue rise by 3% year over year in the first quarter, but net income fell 45% mainly due to refinancing costs. Thanks to its turnaround efforts, the company has maintained relatively positive full-year guidance. Fresenius said it expects revenue to grow in the low- to mid-single-digit percentages, and operating income to be flat or decline by as much as a high-single-digit percentage.
Investors are likely encouraged that the company should be better able to focus on its own priorities once it undergoes the restructuring.
