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Fresenius Kabi, a business segment of Fresenius SE, has completed the acquisition of APP Pharmaceuticals, Inc.

The acquisition is an important step in Fresenius Kabi's growth strategy. Through APP, Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics industry.

Dr. Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE, said: "We are pleased to be able to complete this major transaction in a very short time. Now we are focused on successfully integrating APP and further developing the business. Fresenius and APP share a deep commitment to highest-quality products and medical excellence."

The closing follows completion of the U.S. Federal Trade Commission's (FTC) review of the acquisition. The FTC granted early termination of the waiting period under the Hart-Scott-Rodino Act without conditions. Earlier, German antitrust authorities had also approved the transaction.

Fresenius Kabi had announced the agreement to acquire Schaumburg, Illinois-based APP Pharmaceuticals, Inc., on July 7, 2008.

Fresenius Group expects to consolidate APP Pharmaceuticals in its financial statements as of September 1, 2008.

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Fresenius Kabi, a European leader in infusion therapy and clinical nutrition, has entered into an agreement with Kyorin Pharmaceutical Co. Ltd., Tokyo, Japan, to acquire its artificial colloid product business. Fresenius Kabi acquires the rights for the production, marketing and sale of these products. Kyorin's artificial colloids sales were € 5.2 million in the fiscal year ended March 31, 2006. The colloids are based on hydroxyethyl starch (HES) and are mainly used in surgical and emergency procedures to substitute blood loss. Kyorin is the only provider of HES products for blood volume replacement in Japan.

In addition, Fresenius Kabi is currently setting up a subsidiary in Tokyo for the marketing and distribution of the acquired products as well as its own product portfolio in Japan. The new subsidiary will allow Fresenius Kabi to enhance its presence in the world's second largest healthcare market.

"In Japan, we are focusing on the intensive care and acute care hospital segments. Kyorin's artificial colloids will perfectly complement Fresenius Kabi's product range. With these products, we will enter the Japanese blood-volume replacement market for the first time. We believe that the high medical benefits and the strong patient safety profile of HES products offer excellent growth opportunities in this attractive market segment", said Mats Henriksson, President of Fresenius Kabi's Asia-Pacific region.

# # #

About Fresenius Kabi
Fresenius Kabi's core product range includes infusion solutions for fluid substitution, blood volume expansion and parenteral nutrition, as well as products for enteral nutrition. Furthermore the company provides concepts for ambulatory health care and is focused on managing and providing home therapies. With its philosophy "Caring for life" and a broad product and service portfolio, the company aims at improving the quality of life of patients all over the world.

The company has 15,591 employees. Fresenius Kabi achieved sales of € 1,893 million and an operating profit of € 291 million in 2006.

Fresenius Kabi AG is a 100% subsidiary of the health care group Fresenius AG.

For details please visit www.fresenius-kabi.com.
 

About Kyorin
Kyorin is a pharmaceutical company with a long-standing tradition in healthcare. The company is focused on the marketing and sale of drugs for respiratory, otolaryngologic (ear, nose and throat medicine) and urologic diseases.

As of March 31, 2006 (end of the fiscal year), Kyorin Pharmaceutical Co. Ltd. achieved sales of 67.4 bn JPY (approximately € 440 million) and employed 1,502 people worldwide. Kyorin Pharmaceutical Co., Ltd. is a 100% subsidiary of Kyorin Co. Ltd. Kyorin Co. Ltd. is listed on the Tokyo Stock Exchange.

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Fresenius Kabi, a subsidiary of Fresenius SE, has reached an agreement to acquire Nestlé's enteral nutrition businesses in France (Novartis Nutrition S.A.S.) and in Spain (Nestlé Healthcare Nutrition Spain). With this acquisition, Fresenius Kabi strengthens its fast-growing segment Clinical Nutrition and significantly expands its market position in France and Spain.

Novartis Nutrition holds a leading position on the French enteral nutrition market and offers a comprehensive portfolio of sip and tube feeds and corresponding medical devices. With this acquisition, Fresenius Kabi will significantly improve its market position and will become the second largest provider of enteral nutrition products in France.

Nestlé Healthcare Nutrition Spain has successfully established itself as a renowned provider of enteral nutrition products in the Spanish market during the last few years. The acquisition will provide Fresenius Kabi with access to the Spanish enteral nutrition market.

In 2007, the businesses are projected to achieve combined sales of approximately € 55 million.

The European Commission made the divestiture of the businesses a condition in connection with Nestlé's acquisition of the worldwide clinical nutrition business of Novartis. Completion of the transaction was subject to both the approval of the European Commission and consultation and information of employees' representatives in France and Spain, all of which have now been satisfactorily completed.

The parties agreed not to disclose the purchase price.

The transaction is expected to close in 2007.


Clinical Nutrition:
In clinical nutrition Fresenius Kabi provides parenteral nutrition (administered intravenously) and enteral nutrition (administered as sip or tube feed via the gastrointestinal tract) as well as nutrition pumps and infusion disposables.

# # #

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2006 group sales were approx. € 10.8 billion. On September 30, 2007 the Fresenius Group had 110,379 employees worldwide.

Fresenius Kabi is the leader in infusion therapy and clinical nutrition in Europe and in its most important countries of Latin America and Asia Pacific. Fresenius Kabi's core product range includes infusion solutions for fluid substitution, blood volume expansion and parenteral nutrition, as well as products for enteral nutrition. Furthermore the company provides concepts for ambulatory health care and is focused on managing and providing home therapies. With its philosophy "Caring for life" and a broad product portfolio, the company aims at improving the quality of life of patients all over the world. On September 30, 2007 the company had 16,852 employees. In 2006, Fresenius Kabi achieved sales of € 1,893 million and an operating profit of € 291 million. Fresenius Kabi AG is a 100% subsidiary of the health care group Fresenius SE.

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Fresenius Kabi, a subsidiary of Fresenius SE, has reached an agreement to acquire the Chilean company Laboratorio Sanderson S.A. Sanderson is the Chilean market leader in intravenously administered generic drugs (I.V. drugs) and infusion solutions.

Fresenius Kabi already holds the leading market position in blood volume replacement solutions, intravenous anesthesia, and parenteral nutrition in Chile. Sanderson offers a high-quality range of antibiotics, analgesics, anesthetics and infusion solutions in Chile and other Latin American countries.

Through the acquisition Fresenius Kabi significantly expands its local product range and will become the leading infusion therapy provider in the Chilean hospital market. At the same time, Sanderson's product line, which is approved in Latin America, provides further excellent growth opportunities. The company's state-of-the-art production unit in Santiago de Chile facilitates Fresenius Kabi's product program rollout and its expansion into other Latin American countries.

Sanderson is privately-held and employs about 375 people in Chile and its subsidiary in Peru. It expects sales of € 19 million in 2007.

The acquisition is expected to close in January 2008.

# # #

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2006 group sales were approx. € 10.8 billion. On September 30, 2007 the Fresenius Group had 110,379 employees worldwide.

Fresenius Kabi is the leader in infusion therapy and clinical nutrition in Europe and in its most important countries of Latin America and Asia Pacific. Fresenius Kabi's core product range includes infusion solutions for fluid substitution, blood volume expansion and parenteral nutrition, as well as products for enteral nutrition. Furthermore the company provides concepts for ambulatory health care and is focused on managing and providing home therapies. With its philosophy "Caring for life" and a broad product portfolio, the company aims at improving the quality of life of patients all over the world. On September 30, 2007 the company had 16,852 employees. In 2006, Fresenius Kabi achieved sales of € 1,893 million and an operating profit of € 291 million. Fresenius Kabi AG is a 100% subsidiary of the health care group Fresenius SE.

Fresenius Kabi AG, a subsidiary of Fresenius AG, today announced an agreement to acquire Labesfal – Laboratório de Especialidades Farmacêuticas Almiro S.A. The company is headquartered in Campo de Besteiros in central Portugal and offers intravenously administered drugs (I.V. drugs) for the domestic market. This acquisition will significantly expand the I.V. drug portfolio of Fresenius Kabi, the European market leader in infusion and nutrition therapy. Fresenius Kabi plans to introduce Labesfal's products throughout Europe. The acquisition is an important step in the company's growth strategy. "We have announced in the past that we intend to expand the I.V. drug business of Fresenius Kabi. The purchase of Labesfal offers excellent growth opportunities in this attractive market segment," said Dr. Ulf M. Schneider, Chairman of the Management Board of Fresenius AG.

Privately-owned Labesfal ranks among the 10 most successful companies in Portugal. In 2004, the company achieved sales of € 56 million and employed approximately 320 people. The acquisition will be accretive to Fresenius Kabi's earnings in the first year and will lead to a further improvement in the EBIT margin of the company. Labesfal holds an excellent position on the Portuguese hospital market with a comprehensive product portfolio of generic I.V. drugs such as antibiotics, analgesics and local anesthetics as well as for treating gastrointestinal diseases.

Labesfal's state-of-the-art production site in Campo de Besteiros has adequate capacity for international expansion. For 2005, Fresenius Kabi plans to establish a competence center for the production of I.V. drugs at this location. The company has significant know-how in the production of sterile infusion solutions.

Fresenius Kabi is a leader in the development, production and distribution of infusion therapy products for hospitals. Labesfal is an excellent fit in this segment. Fresenius Kabi plans to use its existing sales and marketing network to introduce Labesfal's I.V. drug products to the European market. The products are expected to receive European regulatory approval within the next two years. Fresenius Kabi estimates the market size of the European hospital market for the I.V. drugs portfolio of Labesfal at € 1.2 billion*.

The former owner of Labesfal, Joaquim Coimbra, will become Chairman of the newly-created advisory board of the company. The management team will include current Labesfal management and local Fresenius Kabi executives.

The acquisition requires the approval of Portuguese antitrust authorities.

* Source: Fresenius Kabi Internal Research

 

Fresenius Kabi, a subsidiary of Fresenius AG, will further expand its position in China by increasing its 65 % stake in the Beijing Fresenius Kabi Pharmaceutical Co., Ltd. (BFP) joint venture to 100 %. Fresenius Kabi will acquire a 35 % stake currently owned by pharmaceutical company Beijing Double Crane Pharmaceutical Co., Ltd.

BFP has about 330 employees and achieved revenue of € 37.4 million in 2004. The company, which was founded in 1994, produces infusion solutions as well as intravenously administered drugs and is one of the most successful Fresenius Kabi subsidiaries in the Asia-Pacific region. Two BFP products – blood-volume substitute HAES-steril and Propofol Fresenius – count among the top seven market launches in China by foreign companies in recent years.

In addition to BFP, Fresenius Kabi has been active in China with a second joint venture, the Sino Swed Pharmaceutical Co. Ltd. (SSPC), since 1999. SSPC had 2004 revenue of about € 56 million and employs about 840 people. The company produces infusion solutions for clinical nutrition. Fresenius Kabi is the market leader in this segment in China with a 24% market share. The SSPC plant in Wuxi in Southeast China has some of the highest quality standards for pharmaceutical production in the country.

Fresenius Kabi will also establish a holding company which will improve the coordination of the existing operations in China. This will strengthen Fresenius Kabi's Chinese activities and allow it to better react to the opportunities presented by a dynamically developing Chinese health care market. The new structure still requires the approval of Chinese authorities.

Fresenius Kabi has achieved double-digit growth in the Chinese market for several years and is the fifth-largest international pharmaceutical company in the country. In 2004, revenue in China grew to € 97 million with organic growth of 25 %.

The global growth consulting company, Frost & Sullivan, has presented Fresenius Kabi with the 2005 Competitive Strategy Leadership of the Year Award. In San Francisco, California, the company received the award for the successful implementation and execution of its growth strategy in the field of clinical nutrition.

Fresenius Kabi is the leader in infusion therapy and clinical nutrition in Europe as well as in its key countries in Asia Pacific and Latin America.
"The company has developed very successfully within the Fresenius Group over the past years. Between 2002 and 2004, the company's contribution to the Fresenius Group's net income climbed from 22 % to 47 %", says Frost & Sullivan research analyst Vanita Khetan. Between 2002 and 2004, the net income of Fresenius Kabi more than doubled from € 30 million to € 79 million.

Vanita Khetan: "The company has successfully positioned itself in clinical nutrition. This is a particularly important and growing area as patients in hospitals are frequently malnourished." A European Council's report confirms that approximately 30 % of patients in European hospitals are malnourished.

Nutrition program sets international standards
For therapeutic efficacy, sufficient and high quality clinical nutrition is essential. Malnourishment can lead to longer rehabilitation times and increased mortality rates.

Frost & Sullivan stated: "Fresenius Kabi has taken the initiative in the field of clinical nutrition. With its program "Good Nutrition Practice" the company sets new international standards in nutrition therapy. In collaboration with an international team of experts, Fresenius Kabi develops a series of measures aimed at identifying patients at risk, determining their nutritional needs and monitoring their nutritional status."

Since the 1960's, Fresenius Kabi has significantly influenced the development of clinical nutrition therapies and products. Today, Fresenius Kabi is the only company that offers infusion solutions for parenteral nutrition (nutrition via the vein) as well as products for enteral nutrition (via the gastro-intestinal tract) and the respective medical devices for their application on an international level.

A network of highly automated regional and supra-regional production plants enables the company to quickly fulfil customers' needs.


Growth strategy successfully executed
Fresenius Kabi's growth strategy is comprised of strong organic growth as well as growth via selective acquisitions selected to expand both its core business portfolio and its regional presence.

At the beginning of this year, the acquisition of the Portuguese company, Labesfal opened up further growth opportunities in the attractive intravenously administered drugs field. Also, Fresenius Kabi will further expand its position in China by increasing its 65 % stake in the Beijing Fresenius Kabi Pharmaceutical Co., Ltd. (BFP) joint venture to 100 %. "Fresenius Kabi has adopted a strong growth strategy to compete with other major companies. Overall, Fresenius Kabi has demonstrated excellent applications of competitive strategy leadership for market shares", says Frost & Sullivan. "This makes the company a worthy recipient of the 2005 World Clinical Nutrition Competitive Leadership of the Year Award."

Frost & Sullivan presents this Award each year to a company who has executed an innovative strategy to capture or solidify its market presence.

Fresenius Kabi, a company of the Fresenius healthcare group, is continuing to expand its market position in South Africa. The European leader in infusion and nutrition therapy today announced that it has acquired Isotec Nutrition from Alliance Pharmaceuticals and the general manager of Isotec, who will continue to hold an executive position. Isotec Nutrition is specialized in compounding and sales of infusion solutions for parenteral (= via the vein) nutrition. Isotec already has a longstanding sales and marketing relationship with Fresenius Kabi South Africa. In 2003, Isotec Nutrition had sales of approx. 10 million €.

Fresenius Kabi is successfully operating in South Africa with its own subsidiary since March 1999 and is the market leader in the areas of parenteral nutrition, generic IV drugs and blood volume substitution. In 2000, Fresenius Kabi acquired Intramed, the leading supplier of standard infusion solutions in South Africa. In addition, Fresenius Kabi has successfully launched products of its enteral nutrition program.

With the acquisition of Isotec Nutrition, Fresenius Kabi further strengthens it's leading position in the field of parenteral nutrition in the South African market. Furthermore, the company completes its product range in the field of infusion and nutrition therapy and has a strong platform for future growth not only in South Africa, but in the whole southern part of the continent. With a population of approximately 200 million people, the southern part of Africa is an important international growth market for Fresenius Kabi.

Fresenius Kabi, a subsidiary of the health care group Fresenius, continues to expand its market position in central and eastern Europe. The European market leader in infusion and nutrition therapy today signed an agreement to acquire Infusia a.s., Horatev, a Czech manufacturer of infusion and parenteral* nutrition solutions.

Infusia a.s. markets its products in the Czech Republic, Slovakia and other eastern European countries and can look back on a history spanning more than 70 years. The Group is well-known in the region and expects sales in 2004 of about 10 million euros.

A modern production site in Horatev, about 50 kilometers east of Prague, meets all the quality standards of European pharmaceutical regulators.

With the acquisition of Infusia a.s., Fresenius Kabi will become one of the leading suppliers in the infusion solution and clinical nutrition segments in the Czech Republic and Slovakia.

Fresenius Kabi has around 11,400 employees in more than 30 countries. Sales of 1,463 million Euros were achieved in 2003, generating an operating profit of 147 million Euros.
With it's philosophy "Caring for life" and a broad product and service portfolio, the company aims at improving the quality of life of patients all over the world. Fresenius Kabi's core product range comprises infusion solutions for fluid substitution, blood volume expansion and parenteral nutrition, as well as products for enteral nutrition. Furthermore the company provides concepts for ambulatory health care and is focused on managing and providing home therapies. Fresenius Kabi AG is a 100% subsidiary of the health care group Fresenius AG.

* Providing intravenous nourishment

Fresenius Kabi is well positioned for continued above-average growth in the coming years. Fresenius Kabi AG management emphasizes this today during a Capital Market Day where the Company presents its business activities, strategy and growth prospects. Fresenius Kabi, a subsidiary of the health care group Fresenius, has become the market leader in infusion therapy and clinical nutrition in Europe and emerging markets. The financial results reflect this growth: Fresenius Kabi's contribution to the Fresenius Group's net income more than tripled between 2002 and 2004 (when comparing nine-month figures), climbing from 15 % (13 million euros) to 46 % (57 million euros). "Fresenius Kabi is an important growth driver for the Fresenius Group," says Dr. Ulf M. Schneider, Chairman of the Management Board of Fresenius AG. Future growth potential also lies in the expansion of the I.V. drug (intravenously administered drug) portfolio, which today accounts for about 100 million euros in sales for Fresenius Kabi.

Striving for a 2007 EBIT margin of 15 %
Fresenius Kabi's dynamic growth was made possible by a strong international focus as well as a specialization in infusion and nutrition therapy for patients in hospital and the outpatient environment. Since 1995, sales have grown at 19 % CAGR while EBIT grew at 26 % CAGR. Even when excluding acquisitions, the Company expects mid-term organic sales growth in the mid-single digit range. Profitability should also increase with Fresenius Kabi forecasting an EBIT margin of 15 % in 2007. For fiscal 2004, Fresenius Kabi confirms an EBIT margin of more than 11.5 % and expects organic sales to grow in the mid-single digits.

Exceptional position in Clinical Nutrition and Infusion Therapy
Since the 1960s Fresenius Kabi has significantly influenced the development of parenteral as well as enteral nutrition and is the only company that offers products for both internationally. Fresenius Kabi is able to offer a comprehensive nutrition therapy for hospital doctors as they, for example, switch patients from parenteral to enteral nutrition during recovery or stabilization. Fresenius Kabi can also rely on decades of scientific expertise in infusion therapy and build on successful products: Voluven® for example today sets international standards for blood volume substitution.
With the exception of Japan and the U.S., Fresenius Kabi markets its products worldwide. With a market share in infusion therapy and clinical nutrition of 21 %, the Company has an impressive lead on the nearest competitor*. Fresenius Kabi estimates the value of this market (global market excluding the U.S. and Japan) at 6.3 billion euros.

Leading in Europe, strong roots in Germany
The health care markets in Europe (excluding Germany) and Canada account for 51 % of Fresenius Kabi's overall sales while the domestic market, which accounts for 27 % of sales, highlights the Company's strong roots. Fresenius Kabi is the market leader in infusion therapy and clinical nutrition in Germany as well as in Europe and its German market share is double that of its closest competitor. In Europe and Canada, Fresenius Kabi expects sales to grow at mid-single digit rates and EBIT to grow stronger than sales. In the future, special attention will be paid to the new markets in Eastern Europe where the Company already holds a leading position. That position was further strengthened by the acquisition of Czech Infusia a.s. announced on December 7, 2004 Fresenius Kabi has a global network of 49 sales organizations and 34 production sites that supply their local markets.

Growth markets yielding excellent growth rates
Fresenius Kabi expects strong organic growth in fiscal 2004 in the Asia-Pacific region (+24 %) as well as in Latin America and South Africa (+14 %). Demographic developments and an improved ability to finance better health care are pushing demand higher in these countries. The regional production and sales networks allow Fresenius Kabi to service this demand with high-quality products. The Company is market leader in both infusion therapy and clinical nutrition. In the future, Fresenius Kabi expects organic sales growth of between 15 % and 20 % p.a. in these markets.

China: Market share of 24 %
Growth is especially strong in China, where Fresenius Kabi has become the fifth-largest foreign pharmaceutical company. When founded in 1982, the Sino Swede Pharmaceutical Corporation, which is 51%-owned by Fresenius Kabi, was the first pharma joint venture ever in the People's Republic with foreign ownership. The company employs 740 people and is specialized in clinical nutrition. A second joint venture, the Beijing Fresenius Kabi Pharmaceutical Corporation, which is 65 %-owned by Fresenius Kabi, produces infusion solutions and I.V. drugs with 350 employees. Fresenius Kabi is the leader in clinical nutrition in China with a market share of 24 %. In the past four years, the Company achieved a 20 % sales CAGR. In the third quarter of 2004, Fresenius Kabi introduced two important products to the Chinese market: the parenteral nutrition bag Kabiven® and the blood volume substitute Voluven®.


Background: Fresenius Kabi activities
Infusion therapy - Standard infusion solutions, colloids, I.V. drugs as well as medical devices and disposable products

Infusion solutions and colloids are used to compensate for fluid and blood loss. Standard infusion solutions contain mainly salts (electrolytes) as well as water and are used to offset water and electrolyte imbalances in cases such as dehydration, lack of salt or a lack of specific minerals in the blood. The main indication is the treatment of patients suffering from blood loss due to accident
or surgery. Colloids can present a safe alternative to blood transfusions after accidents or surgery and Fresenius Kabi produces and develops hydroxyethyl starch solutions such as HAES-steril® and Voluven®, which use corn-based raw materials. In addition, Fresenius Kabi offers I.V. drugs such as anesthetics (e.g. Propofol Fresenius), pain relievers and antibiotics. The infusion solution product portfolio also includes medical devices and disposable products (such as cannulae, tubes and pumps) that are used to administer infusion solutions and I.V. drugs.

Clinical nutrition - enteral using the intestines and parenteral using the veins

Fresenius Kabi produces infusion solutions for parenteral nutrition that contain all key nutritional components: carbohydrates, protein, fats, vitamins, trace elements and salts. While this solution is injected directly into the blood stream, liquid enteral nutrition is administered as sip or tube feed. Enteral nutrition also contains all the necessary components with a balanced number of calories. Nutrition therapies can prove useful after accidents or surgery, in cases of malnourishment or in cancer patients.

Transfusion technology
In the field of transfusion technology, Fresenius Kabi offers a comprehensive range of equipment for the production and processing of blood products for blood donation and blood banks.

 

*All market data in this release: Fresenius Kabi Internal Research