Dialysis consumables a top expansion priority for Medilines 

Medilines Distributors, Inc (PSE: MEDIC), one of the country’s leading high-value medical equipment distributors, commits itself to its growth strategy by fast-tracking its expansion into the dialysis consumables market, a move that will not only accelerate its revenues but also generate higher margins. 

A study by Ken Research in 2021 stated that the size of the domestic dialysis market is expected to grow to Php13.5 billion by 2023, with bulk of this market accounted for by the dialysis consumables segment. 

Dialysis consumables include dialyzers, concentrate solution, and bloodlines, among others. According to the same study, Medilines captured 50.5% market share in terms of revenues of all dialysis products sold by distributors in the Philippines as of 2021.  

The Company’s dialysis consumables product line alone recorded revenues of Php197 million for the full year ending December 31, 2021 and is expected to grow by 43% by year-end 2022.  

“There is a significant opportunity to service the dialysis market in the Philippines, and Medilines is moving quickly to be a leader not just on the equipment side, but also in the much larger consumables side of the market. This will be a significant driver of our company’s growth moving forward. More importantly, this is well in line with our mission to make quality healthcare more accessible to Filipinos,” said Mr. Virgilio Villar, Chairman of Medilines.  

On the back of management’s view of Medilines’ strong fundamentals and growth prospects, the Company announced yesterday a share buyback program of up to Php100 million.  

“Amidst market volatility, we remain confident in the long-term value of our company and the many opportunities available to us in the healthcare industry. We are very focused on business strategies that will deliver profitable and sustainable growth over time. In addition, we are working to enhance shareholder value through regular dividends declaration, the recently announced share buyback program, and other investor relations initiatives,” said Ms. Patricia V. Yambing, President and CEO of Medilines.  

Since its listing on the Philippine Stock Exchange in December last year, MEDIC declared and paid two cash dividends totaling Php25 million, equivalent to 15% of the Company’s 2021 net income.