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Enteral nutrition is administered through a feeding tube or it can be taken orally. Fresenius owns 32% of Fresenius Medical Center, which saw shares drop on recent news that Ozempic's kidney disease treatment trial showed signs of success. Clinical nutrition is about 20% of group profits and an important subset of its larger specialized nutrition unit, Ackerman said. "Many investors only focus only on their infant formula unit and don't know how big or how profitable clinical nutrition is," he said. "Clinical nutrition is the jewel in Danone's crown and probably the most attractive part of Danone's portfolio, yet is hidden from investors."
Persons: Stefano Natella, — hasn't, Hassan Al, Wakeel, Warren Ackerman, Ackerman, Lindsay Clarke, Enteral, Danone's Nutrison, , Baxter, Abbott, Sara Hennicken, Fresenius, Nestlé, Mark Schneider, Nestle, — CNBC's Michael Bloom Organizations: Guggenheim, World Health Organization, WHO, Barclays, Danone, Fresenius, Al, Alliance for Aging Research, Aging, CNBC, Nestle, Companies, — Nestle, Nutrition, Fresenius Medical Locations: German, Paris, China, Swiss, United States, parenteral, Latin America
There's a global investing opportunity in a corner of health care that is both "significant and underappreciated," according to Barclays. For Nestle, that shift is also a catalyst for more growth in China as the market expands, the bank said. "We view it as a 'hidden jewel' where we expect increased investment from the new management team," Barclays said. German health care company Fresenius is also a "clear beneficiary" of the shift toward enteral nutrition, as it's set to leverage its leadership position in China in that area, the bank said. It also has a strong position in enteral in the region, positioning it to benefit from the high potential for growth."
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