Market Overview

Investing for the Diabetes Epidemic (DVA, FMS, WST, BDX, RVP)


Sometimes we can find opportunities in sobering statistics. On a global scale, diabetes is reaching epidemic proportions with an estimated 285 million suffers worldwide. In America, nearly 24 million people are currently diagnosed and that number is expected to grow by an additional 12 million by 2020. Costs for diabetes care in the United States are estimated to be over $218 billion. Whatever the reason for this growing worldwide trend, opportunities exist for investors in the companies that are working towards a cure or treat diabetes and many do not carry “biotech” like risks.

One of the tragic effects of diabetes is the potential for kidney failure. Millions of people around the world suffer from this condition. Both DaVita (NYSE: DVA) and Fresenius Medical Care (NYSE: FMS) own and operate kidney dialysis centers.

The largest market for medical devices is the diabetes sub-sector. This sub-sector has grown from $12.4 billion in 2000 to its current levels of nearly $30 billion. Investors can play the device angle through several avenues from syringe manufacturers like Retractable Technologies (NYSE: RVP) and West Pharmaceuticals (NYSE: WST) to the need for glucose monitors through Becton-Dickinson (NYSE: BDX).

Posted-In: American Diabetes Association Diabetes healthcareLong Ideas Dividends FDA


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