FMS - Fresenius sees brighter days for pharma division Kabi

2023-05-25 14:51:52 ET

German healthcare service provider Fresenius Medical Care ( NYSE: FMS ) increased its 2023 outlook for its pharmaceutical division Kabi on Thursday, citing demand for clinical nutrition, biosimilars, and plasma products.

Ahead of an investor event, Fresenius ( FMS ) said that sales at Kabi, adjusted for forex changes, would rise by a "mid-single-digit" percentage, and its operating margins would reach 14% of sales for the year. That compared favorably to the company's previous forecasts of "low-to mid-single-digit" growth and 13%, respectively.

FMS also projects Kabi's operating profit margin would hit the upper end of its medium-term target of 14%-17% by 2026.

Kabi is "being there when there is more demand for plasma and when demand for clinical nutrition in hospitals is returning to pre-COVID levels," Reuters reported quoting Fresenius' ( FMS ) recently appointed CEO, Michael Sen.

Kabi, which accounted for 19% of FMS' Q1 sales, has also invested significantly in its budding biosimilar business and started to launch products in the U.S.

More on Fresenius

• Fresenius appoints head of pharma unit as new CEO
• Fresenius Q1 operating income drop softened by easing labor shortage; deconsolidation on track
• Fresenius Medical Care: Attractive Post Crash, Maintaining A 'Buy' Rating

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