According to the National Kidney Foundation, millions of people die every year due to kidney failures because they do not receive affordable treatment. The Global Burden of Disease, which provides comprehensive detail on mortality and disability throughout countries, stated that in 2017, around 1.2 million people died because of chronic kidney failures. The study also described that since 1990, the percentage of people needing dialysis has jumped to 40% as of 2020. The foundation also analyzed that China will lose approximately $558 billion through the next decade due to impacts on death and disability because of heart failure and kidney disease. In the US alone, the need for kidney organ donors is estimated to rise 8% annually from 2018. And by the year of 2040, chronic kidney disease is set to be the 5th global reason of deaths.
The International Society of Nephrology, an international organization dedicated to enhancing global kidney health, said that in 2023, roughly 850 million people around the world are suffering from chronic kidney disease. In many nations, kidney failure treatments or dialysis are not publicly financed. Dialysis usually has two types: hemodialysis and peritoneal dialysis. Dialysis costs more than $25,000 per year, according to the International Society of Nephrology.
"Chronic kidney disease has emerged as one of the leading causes of mortality worldwide, and it is one of a small number of non-communicable diseases that have shown an increase in associated deaths over the past 2 decades," according to the US National Institute of Health’s National Library of Medicine.
Healthcare organizations have been investing in kidney and dialysis treatments over the years. Some of the notable names in the dialysis industry are Thermo Fisher Scientific Inc. (NYSE:TMO), Merck & Co., Inc. (NYSE:MRK), The Cigna Group (NYSE:CI), and others.
Kidney diseases are expected to gradually rise overtime and firms have been allocating their capital spending towards technological advancements for the treatment of chronic kidney diseases and dialysis. We decided to take a look at some of the best dialysis and kidney disease stocks to buy in the healthcare sector. Some other major stocks that will appear later in our article are Humana Inc. (NYSE:HUM), Boston Scientific Corporation (NYSE:BSX), Bristol-Myers Squibb Company (NYSE:BMY), and others. You can also read 12 Best Health Insurance Stocks to Buy and 12 Cheap Healthcare Stocks to Buy in 2023 for even more healthcare stocks.
Looking ahead, the wearable artificial kidney and implantable bioartificial kidney each have a potential to be the leading treatment for chronic kidney diseases and dialysis.
"They are expected to contribute to higher toxin clearance with more cardiovascular stability as well as improved quality of life," the National Library of Medicine reported. In the US alone, there are roughly 750,000 patients suffering from end-stage renal disease, while 2.6 million people receive renal replacement therapy around the world.
In 2022, the end stage renal disease sector was valued at around $114 billion and it is expected to reach more than $183.9 billion by 2032, according to Global Market Insights. In September 2023, 17 patient advocacy organizations created the Global Patient Alliance for Kidney Health to form policies that enhance reach to screening and early treatment of chronic kidney disease, Bloomberg reported.
Best Dialysis and Kidney Disease Stocks to Buy
Photo by martha-dominguez-de-gouveia on Unsplash
Pharmaceutical companies globally are carrying out trials on kidney diseases' treatments. The Wall Street Journal reported that Novo Nordisk A/S (NYSE:NVO)'s Ozempic drug demonstrated success in its trial for kidney failure in patients suffering from diabetes. In terms of global revenue in the kidney and dialysis sector, North America had the highest revenue share of 42% in 2022, while Europe is poised to grow at a revenue share of 23.7% from 2023-2032. In products category, the hemodialysis equipment segment had a market share of 32% with leading the market and is rising at the highest compound annual growth rate from 2023 to 2032. The dialysis centers & hospitals segment maintained the highest share in end-users. IBIS World reported that dialysis centers in the US generated revenue of about $36 billion this year which jumped at a compound annual growth rate of 2.4% over the last five years.
Our Methodology
Following a thorough analysis of the healthcare and pharmaceutical sectors, we compiled our list of the best dialysis and kidney disease stocks to buy and filtered the companies that had a notable presence in the dialysis and kidney disease sector. We then picked the top 30 kidney disease and dialysis stocks and then ranked them according to their market capitalization with more than $65 billion. The hedge fund sentiment for each stock was extracted from Insider Monkey’s database as of second quarter of 2023, encompassing 910 top-tier hedge funds. We then ranked the stocks in ascending order of the number of hedge fund investors.
Founded in 1897 and headquartered in New Jersey, Becton, Dickinson and Company (NYSE:BDX) ranks 10th in our list of the best dialysis and kidney disease stocks to buy. With a market capitalization of $75.6 billion, Becton, Dickinson and Company (NYSE:BDX) provides comprehensive plans for creating, restoring, and retaining the patients' arteriovenous. Arteriovenous is termed as a lifeline for hemodialysis patients. Becton, Dickinson and Company (NYSE:BDX) also recently received clearance for its Aspirex mechanical aspiration thrombectomy system to eliminate acute emboli and thrombi for hemodialysis access of arteriovenous grafts. It posted fiscal Q3 EPS of $2.96 that came ahead of analysts' forecast of $2.89.
During Q2 2023, 55 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Becton, Dickinson and Company (NYSE:BDX). Out of these, the firm’s largest shareholder is David Blood and Al Gore's Generation Investment Management since it owns 1.9 million shares that are worth $501.8 million.
Becton, Dickinson and Company (NYSE:BDX) joins The Cigna Group (NYSE:CI), Merck & Co., Inc. (NYSE:MRK), and Thermo Fisher Scientific Inc. (NYSE:TMO) in our list of the best dialysis and kidney disease stocks to buy.
Founded in 1888 and headquartered in Illinois, Abbott Laboratories (NYSE:ABT) ranks 9th in our list of the best dialysis and kidney disease stocks to buy. With a market capitalization of $160.4 billion, Abbott Laboratories (NYSE:ABT) provides therapeutic nutrition for patients on dialysis stage 5 of chronic kidney disease. The company reported second quarter EPS of $1.08 that beat analysts' expectations of $1.05.
As of June 2023, 62 out of the 910 hedge funds part of Insider Monkey’s research were Abbott Laboratories (NYSE:ABT)'s investors. Ric Dillon's Diamond Hill Capital is the largest shareholder among these because of its $553 million stake.
Medtronic plc (NYSE:MDT) is an Ireland-based company which was incorporated in 1949. With a market capitalization of $96.2 billion, Medtronic plc (NYSE:MDT) recently collaborated with DaVita Inc. (NYSE: DVA) to launch Mozarc Medical, an independent new firm to enhance kidney health and patient-centered technology solutions. It posted a 6% revenue growth in fiscal Q1 and EPS of $0.593.
During 2023’s second quarter, 63 out of the 910 hedge funds part of Insider Monkey’s research had invested in Medtronic plc (NYSE:MDT). Jean-Marie Eveillard's First Eagle Investment Management is the firm’s biggest shareholder through a $484 million stake that comes with 5.5 million shares.
HCA Healthcare, Inc. (NYSE:HCA) provides healthcare service across the US. Founded in 1968 and is headquartered in Nashville, Tennessee, HCA Healthcare, Inc. (NYSE:HCA) ranks 7th in our list of the best dialysis and kidney disease stocks to buy. The company provides treatment plans for patients suffering from renal failure. HCA Healthcare, Inc. (NYSE:HCA) is the first company in Florida to carry out robotic live kidney donation and are approved by the United Network of Organ Sharing for kidney and liver transplantation. It posted Q2 consolidated revenue of $15.9 billion, up 7% from a year earlier and EPS of $4.21.
66 out of the 910 hedge funds researched by Insider Monkey had invested in the firm as of Q2 2023. HCA Healthcare, Inc. (NYSE:HCA)’s largest hedge fund investor is Jean-Marie Eveillard's First Eagle Investment Management since it owns 4.6 million shares that are worth $1.4 billion.
Founded in 1887 and headquartered in New York, Bristol-Myers Squibb Company (NYSE:BMY) provides different treatment plans for kidney failures including hemodialysis and peritoneal dialysis. With a market capitalization of around $120 billion, Bristol-Myers Squibb Company (NYSE:BMY) ranks 6th in our list of the best dialysis and kidney disease stocks to buy. In the second quarter, it reported EPS of $1.93 and revenue of $154 million.
By the end of this year’s second quarter, 66 out of the 910 hedge funds part of Insider Monkey’s research were Bristol-Myers Squibb Company (NYSE:BMY)’s investors. Richard S. Pzena's Pzena Investment Management is the largest shareholder among these since it owns 4.3 million shares that are worth $277 million.
Along with The Cigna Group (NYSE:CI), Merck & Co., Inc. (NYSE:MRK), and Thermo Fisher Scientific Inc. (NYSE:TMO), Bristol-Myers Squibb Company (NYSE:BMY) is one of the top dialysis and kidney disease stocks to buy according to hedge funds.
