I Hate Dialysis Message Board
Dialysis Discussion => Dialysis: News Articles => Topic started by: okarol on June 24, 2009, 05:06:31 PM
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Fresenius immune to govt budget cuts - CFO
Wed Jun 24, 2009 9:27am EDT
* CFO says life saving treatments will be funded
* No need for further takeovers at Kabi division
* No capital increase planned,
* Co to keep high-yield credit rating
(adds background, CFO comments, share price)
FRANKFURT, June 24 (Reuters) - Healthcare conglomerate Fresenius (FREG_p.DE: Quote, Profile, Research, Stock Buzz) is largely immune to government budget cuts and the global slowdown because funding of its live saving treatments offers will not be untouched, its finance chief said.
"When it comes to the live extending parts of the overall healthcare sector there is absolutely no way we are going to see any massive cuts," Chief Financial Officer Stephan Sturm told Reuters TV on the sidelines of an industry event in Frankfurt on Wednesday.
He cited the example of dialysis treatment for people suffering from kidney failure.
Fresenius controls Fresenius Medical Care (FMEG.DE: Quote, Profile, Research, Stock Buzz), the world's dialysis company.
Asked about further acquisitions at the infusion and tube feeding unit Kabi, Sturm said he has "very comfortable" with its size and geographical reach after last year's acquisition.
Kabi in 2008 took over APP Pharmaceuticals for $3.7 billion to expand into selling generic infusion drugs in the United States, and Fresenius raised its capital as a result.
The group is not in need of a further capital increase and its current non-investment grade credit rating secures the lowest cost of total capital including equity, Sturm added.
Fresenius shares were down 2.2 percent at 39.65 euros while the European DJ Stoxx Health Care Index declined 0.4 percent.
(Reporting by Ludwig Burger)
http://www.reuters.com/article/rbssHealthcareNews/idUSLO36702220090624