Fresenius Kabi Expands I.V. Drug Portfolio
Conference Call April 21, 2008
Safe Harbor Statement
This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.
Acquisition Highlights Dabur Pharma
Fresenius Kabi acquires 73.3 % of the Indian i.v. drug company Dabur Pharma Ltd.
- -A leading supplier of generic drugs and APIs to treat cancer
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- Strengthening Fresenius Kabi's position in the fast-growing oncology segment
- -Attractive product portfolio – 45 existing formulations / APIs
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- Transaction is expected to be accretive to Fresenius' Group Cash EPS in 2 - 3 years
Group Cash EPS: before transaction-related amortization of intangible assets
Dabur Pharma: Key facts
- -Sales FY 06/07: >€ 41 million
- -Present in >40 countries
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- Sales distribution: ~29 % API sales
- ~26 % local generic drug sales ~45 % international generic drug sales
- -Approx. 960 employees
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- State-of-the art research and development center in India with approx. 200 employees
Strategic Rationale for the Transaction
- -Extend Fresenius Kabi's i.v. drug portfolio
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- Benefit from Dabur's excellent position in generic drugs and APIs to treat cancer patients
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- Continue i.v. drug growth strategy through Dabur's research, development and international product registrations
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- Utilize Fresenius Kabi's international sales and marketing presence to commercialize Dabur's product portfolio
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- Expand Fresenius Kabi's compounding business through extended cytostatic product range
Attractive Product Portfolio to Address Market Potential
Selected compounds:
Benefit from Dabur's Manufacturing Expertise
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- One of the few manufacturers worldwide with international registration for the production of all cytostatic manufacturing steps
- →preparation of raw material → production of the API → manufacturing of the generic drug
- -Two production facilities in India (APIs and drugs)
- -One facility in UK (drugs)
- -Well-positioned for cost and quality leadership
Transaction Schedule
- -Agreement to acquire 73.3 % of Dabur Pharma Ltd.
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- Public offer announced to acquire up to additional 20 % of Dabur Pharma's share capital; agreement with a third party to secure the participation of 2.4 % of Dabur Pharma's share capital in the public offer
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- Closing of the transaction expected beginning of Q3/08; subject to completion of the public offer process and relevant approvals required under Indian law
Summary
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- Further important step towards implementing Fresenius Kabi's i.v. drug strategy
- -Attractive product segment creating additional growth opportunities
- -Excellent future earnings potential