Fresenius sees up to 10 pct profit growth in 2010

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Fresenius sees up to 10 pct profit growth in 2010
Wed Feb 24, 2010 1:41am EST
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Fresenius SE
FREG_p.DE
€51.18
+2.26+4.62%
12:00am PST

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* Sees 8-10 pct growth in adj net income in 2010

* Subsidiary FMC's Q4 net $247 mln, slightly above estimates

FRANKFURT, Feb 24 (Reuters) - German healthcare conglomerate Fresenius (FREG_p.DE) posted full-year operating earnings growth of 19 percent and raised the prospects of further gains in 2010 as it brought new generic infusion drugs to market.

Fresenius, which traces its roots to a 15th century pharmacy that still exists in Frankfurt today, on Wednesday said it targeted an 8-10 percent gain in 2010 adjusted net income excluding currency effects.

Full-year earnings before interest and tax (EBIT) advanced 19 percent to 2.05 billion euros ($2.79 billion), in line with the average estimate in a Reuters poll. [ID:nDE61I1PR]

Revenue excluding currency effects would rise 7-9 percent in 2010, it said.

Results were boosted by Fresenius's APP, its $3.7 billion acquisition from 2008 to branch out into the U.S. generic infusion drugs market, where it competes with drug and medical gear supplier Hospira (HSP.N) as well as Pfizer (PFE.N). [ID:nN29165093]

APP had a temporary monopoly over the anti-blood clotting medicine heparin -- a key dialysis drug -- in the United States after fatalities forced Baxter International (BAX.N) to recall its heparin product in early 2008.

But Hospira won U.S. regulatory approval for its heparin products last August and has taken considerable market share from APP.

Fresenius subsidiary Fresenius Medical Care (FMC) (FMEG.DE), the world's largest kidney dialysis company, said fourth-quarter net income rose 15 percent to $247 million, slightly above analyst expectations of $240 million.

Average revenue per dialysis treatment in the United States rose 6.6 percent to $357 amid higher reimbursement from private insurers and higher use of medication.

FMC, which generates more than two-thirds of its sales in North America, said it saw 2010 net income rising to $950-$980 million.

In addition, it said full-year revenue would be more than $12 billion, compared with $11.25 billion in 2009.

FMC competes mainly with Baxter for the dialysis equipment market and it dominates the U.S. dialysis market along with rival DaVita (DVA.N).

(Reporting by Ludwig Burger)

http://www.reuters.com/article/idUSLDE61L20X20100224?type=marketsNews