Fresenius plunges following profit warning, despite favorable Akorn news

Fresenius (FWB: FRE) saw its worst share price fall ever on Friday, after the German healthcare group issued a profit warning, the previous day. Its share plunged 17.71% to 38.00 euros by close.

Based on the current status of the group’s budget process and its fiscal 2018 guidance, Fresenius expects mid-single digit organic sales growth for FY 2019. Group net income, however, is expected to be broadly stable over FY 2018. Fresenius continues to seek both sales growth and efficiency improvement initiatives in order to enhance these expectations. For 2019, Fresenius now expects sales growth in the mid-single digits and flat net profit. Previously it forecast sales growth at 7.1% to 10.3% and earnings growth of 8.3% to 12.6%.

Given its outstanding financial performance in FY 2018, Fresenius Kabi will enter 2019 from a tough comparison basis. In general anticipation of easing drug shortage benefits and meaningful expenses for the further development of its biosimilars portfolio Fresenius Kabi expects mid-single digit organic sales growth and low- to mid-single digit EBIT growth in constant currency.