Gambro AB, the world's largest dialysis products producer, may lose an important supply agreement with El Segundo-based dialysis service provider DaVita Inc. because of a U.S. ban on imports of Gambro's dialysis monitors.

Stockholm-based Gambro, whose shareholders are considering a $5.4 billion bid (39.2 billion kronor) from Sweden's billionaire Wallenberg family, said it has 90 days to fix issues raised by DaVita, which said it had notified Gambro on May 29 that it was terminating the agreement.


The supply agreement with DaVita was part of Gambro's 2004 sale of its U.S. kidney dialysis clinics to DaVita for $3.1 billion. The U.S. Food and Drug Administration last January banned imports of three Gambro dialysis monitors after the agency found manufacturing flaws at a Gambro plant in Italy.


Gambro said in a statement that it does not believe the company's performance to date has in any way resulted in a breach in the agreement with DaVita.


"We view our relationship as a partnership and it is important to us that our arrangements will be mutually beneficial," said Chief Executive S & #246;ren Mellstig. "Gambro is committed to being flexible where possible to address the concerns voiced by DaVita."

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