Fresenius cashes in on drug shortages

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Fresenius cashes in on drug shortages

Home/Pharma News | Posted 21/09/2012 0 Post your comment

German healthcare conglomerate Fresenius has posted substantial growth across all regions and product areas during the first half of 2012 for its US business Fresenius Kabi. The growth has been largely attributed to rivals’ problems with supplying generics on the drug shortages list in the US.

The company is also well on track for further strong growth in the second half of 2012. Demand in the US is expected to remain high supported by ongoing generic drug shortages, particularly of the sterile injectable drug propofol.

Fresenius Kabi, leader in injectable generic drugs in the US, has been the only supplier of propofol in the US, since rival generics maker Hospira had to temporarily shut down its production of the anaesthetic in March 2012. Hospira has been plagued by problems due to its continuing lack of compliance with FDA requirements. Fresenius had anticipated Hospira to restart propofol deliveries in August 2012, however, it is now expected that Hospira’s problems will last well into the fourth quarter of 2012.

As a result, the company now expects sales growth of approximately 9%, up from the companies previously, projected 7% to 9%.

Fresenius Kabi must be pleased with its decision to boost its manufacturing capacity for injectable generic drugs at its US-based APP Pharmaceuticals division in response to continuing drug shortages in the US [1]. This has certainly paid dividends for the company. The APP Pharmaceuticals plant produces some of the ‘most wanted’ types of drugs on the FDA short supply list: injectables for oncology and anti-infectives, in addition to anaesthetic/analgesic and critical care products.

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References

1. GaBI Online - Generics and Biosimilars Initiative. US drug shortages – FDA may hinder, but APP may help [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2012 Sep 21]. Available from: www.gabionline.net/Generics/News/US-drug-shortages-FDA-may-hinder-but-APP-may-help

Source: Fresenius, Fresenius Kabi, Reuters