Healthy kidneys help the body filter out impurities from the blood, and dialysis helps replace that function for patients whose kidneys aren't working properly.
The uptick in stocks in the industry is due to voter rejection of Proposition 8 in California.
The ballot measure would have limited a dialysis clinic's revenue to 115% of the average cost of dialysis treatment in the state, according to analysts at Leerink.
If Proposition 8 had passed, DaVita, one of the largest providers of dialysis, would have lost $450 million a year, California Healthline reported.
