Fresenius to discontinue biotech subsidiary
Fresenius, a health care group with international operations, has decided to discontinue its subsidiary Fresenius Biotech. Instead, the company will focus on its four established business segments Fresenius Medical Care, Fresenius Kabi, Fresenius Helios and Fresenius Vamed, which offer significant growth opportunities.
The company is in talks with several parties about a sale of Fresenius Biotech, while simultaneously assessing the equally viable option of continuing the immunosuppressive drug ATG-Fresenius S within the Fresenius group. ATG-Fresenius S has been well established in the hospital market for decades, and is consistently profitable. Fresenius will divest the trifunctional antibody Removab (catumaxomab) business. The final decision on how to proceed will be made in the first quarter of 2013.
In the first nine months of 2012, Fresenius Biotech's sales increased by 15% to $34 million. ATG-Fresenius S sales grew by 14% to $29.4 million. Removab sales rose by 22% to $4.3 million. Fresenius Biotech's EBIT was -$19.6 million (Q1-3 2011: -$24.9 million). For the full year 2012, an EBIT of about -$32.7 million is expected. Withdrawing from Removab will have a positive effect on Group earnings starting in 2013.
Fresenius Biotech received the only Europe-wide approval to date for a monoclonal antibody developed in Germany when the European Commission approved Removab in 2009 for treating malignant ascites. The company subsequently obtained reimbursement approvals for Removab from the national health care systems of several European countries, providing the opportunity to expand marketing of the drug.
Fresenius will focus on the attractive growth opportunities of its four core business segments, which have grown strongly over the last years and offer outstanding prospects. Between 2001 and 2011, Group sales increased from $9.5 billion to $21.6 billion, and Group net income from $121 million to approximately $1 billion. For the full year 2012, Fresenius expects sales of more than $24.9 billion, corresponding to an increase of 12% to 14% in constant currency. Net income is forecast to exceed $1.1 billion, an increase of 14% to 16% in constant currency.