Fresenius has decided today to terminate the company’s merger agreement with Akorn, due to Akorn’s failure to fulfill several closing conditions.
Fresenius’ decision is based on, among other factors, material breaches of FDA1 data integrity requirements relating to Akorn’s operations found during Fresenius’ independent investigation. Fresenius offered to delay its decision in order to allow Akorn additional opportunity to complete its own investigation and present any information it wished Fresenius to consider, but Akorn has declined that offer.
Fresenius confirms its guidance for 2018. The Group continues to expect a sales growth of 5% to 8%2 in constant currency. Group net income3 is expected to increase by 6% to 9%4 in constant currency (excluding expenditures for the further development of the biosimilars business around 10% to 13%5).
On Saturday, Fresenius Medical Care announced the sale of Sound Inpatient Physicians Holdings, LLC. The expected pre-tax book gain of around €800 million on this transaction is excluded from Fresenius’ 2018 Group guidance.
Fresenius will report its first-quarter results, as scheduled, on May 3, 2018.
1FDA: Food and Drug Administration
22017 adjusted for IFRS 15 (EUR486 million at Fresenius Medical Care)
3Net income attributable to shareholders of Fresenius SE & Co. KGaA
4Base 2017: EUR1,816 million; 2018 before special items (acquisition-related expenses); including expenditures for further development of biosimilars business (EUR43 million after tax in FY/17 and ~EUR120 million after tax in FY/18)
5Base 2017: EUR1,859 million; 2018 before special items (acquisition-related expenses); excluding expenditures for further development of biosimilars business (EUR43 million after tax in FY/17 and ~EUR120 million after tax in FY/18)