I Hate Dialysis Message Board
Off-Topic => Off-Topic: Talk about anything you want. => Topic started by: Zach on July 07, 2008, 02:47:20 PM
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http://www.nytimes.com/aponline/business/AP-Germany-Fresenius-Kabi-APP.html
By THE ASSOCIATED PRESS
Published: July 7, 2008
Filed at 12:17 p.m. ET
FRANKFURT, Germany (AP) -- Fresenius SE said Monday it has agreed to buy U.S. generic drug maker APP Pharmaceuticals for $3.7 billion in cash in a deal that will give the German health care company more opportunities in the North American market for drugs administered intravenously.
Fresenius will pay $23 a share for the Schamburg, Ill.-based APP Pharmaceuticals in the deal, along with a registered and tradable contingent value right that could result in as much as $6 a share, provided APP reaches adjusted pretax profit targets from 2008 to 2010, the companies said in a statement.
The $23 a share price is a 29 percent premium over APP Pharmaceutical's closing price on Thursday, the last day of trading in New York before the July Fourth holiday.
APP Pharmaceutical's shares climbed $5.84, or 33 percent, to $23.66 in midday trading Monday. Fresenius shares fell almost 7 percent to 51.59 euros ($80.24) in trading in Frankfurt.
APP will be combined with the U.S. subsidiary of Fresenius Kabi, the companies said. APP founder Dr. Patrick Soon-Shiong, who holds more than 80 percent of APP's stock, was on board for the deal.
''The combined company will allow for the rapid globalization of APP's portfolio with the same high levels of quality and patient commitment for which we have become known, while at the same time providing a more comprehensive and complementary offering of injectable pharmaceuticals, devices and delivery systems to customers worldwide,'' Soon-Shiong said in a statement.
APP employs some 1,400 workers and operates production facilities in New York, Puerto Rico, Toronto and in Illinois. Its drug portfolio includes more than 100 products used for oncology, intensive care and anesthesia, along with fighting infections.
In 2007, APP reported a pretax profit of $253 million on sales of $647 million.
''APP is a fast-growing, highly profitable company and a strong management team that has an excellent market position in the U.S.,'' Fresenius chief executive Ulf Mark Schneider said in a statement. ''Our firm very much shares APP's dedication to quality and medical excellence for the benefit of patients. The acquisition provides significant growth opportunities for Fresenius Kabi.''
He said the addition of APP will let Fresenius Kabi be able to ''market its product range in the U.S. Fresenius Kabi's international marketing and sales network will allow us to sell APP's products globally.''
Fresenius employs more than 116,000 workers worldwide and last year posted sales of 11.4 billion euros ($17.9 billion).
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Another feather in the cap of Fresenius. After the Baxter heparin fiasco earlier this year, most centers switched to Abraxis from APP. This will give Fresenius a bigger edge in it's ongoing battle with Davita. Fresenius gives large discounts on it's products to it's own centers (including dialysis machines) forcing rivals to experience higher costs on many dialysis products.
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Another feather in the cap of Fresenius. After the Baxter heparin fiasco earlier this year, most centers switched to Abraxis from APP. This will give Fresenius a bigger edge in it's ongoing battle with Davita. Fresenius gives large discounts on it's products to it's own centers (including dialysis machines) forcing rivals to experience higher costs on many dialysis products.
While it's true that Fresenius does charge it's clinics less for it's own products (roughly 1/4 less than competitors on some products) we get all our medication from an outside company including the meds Fresenius already owns.
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Baxter won their lawsuit against Fresenius over the 2008K. I'll be curious to see how that one finally turns out. I wonder if Baxter still sells any of it's products to Fresenius centers.
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Baxter won their lawsuit against Fresenius over the 2008K. I'll be curious to see how that one finally turns out. I wonder if Baxter still sells any of it's products to Fresenius centers.
That was like the 6th time Baxter had appealed after losing the suit. Fresenius is now doing the same. I wouldn't expect to see an end to that battle anytime soon, and yes Baxter stills sells things to Fresenius such a PD stuff.