A California bill that would significantly affect dialysis revenues for companies like DaVita Inc. DVA, +2.93% and Fresenius Medical Care AG & Co. FMS, -1.52% passed the state assembly and senate this week. DaVita shares dropped nearly 9% on Thursday before lifting 1.4% on Friday, while Fresenius stock declined about 2% on Thursday and declined 1% on Friday. The legislation next heads to the desk of Governor Jerry Brown, who has until the end of September for a decision. Called SB 1156, the measure would restrict the financial assistance that dialysis companies offer to patients. DaVita shares have dropped 3.9% month-to-date and Fresenius shares have lifted 4.6%, compared with a 3% rise in the S&P 500 SPX, -0.14% and a 2.4% rise in the Dow Jones Industrial Average DJIA, -0.22%
Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails. Sign up here.