Thanks to shortages, Fresenius sees 9% sales growth at drug unit Kabi

One drugmaker's problem is another's opportunity. Just witness Fresenius Kabi, the generic injectables unit of Germany's Fresenius group. Its parent just hiked its growth forecast for the business for the third time this year. Now, Fresenius expects Kabi to deliver 9% revenue growth for the year, with profit margins of around 20.5%.

The key factor here is "generic injectables." Of all the drugs now on FDA's list of shortages, generic injectables are the most common. Quality problems, recalls, and other manufacturing issues have crimped supplies, and that opens the door for rivals to step in.

One reason for Kabi's accelerated growth, Reuters says, is propofol, the anesthetic that's been running short ever since Teva Pharmaceutical Industries ($TEVA) stopped production. Kabi has been the only propofol supplier in the U.S. since March, when Hospira ($HSP) had to stop production temporarily. Kabi thought its competitor would be back up to speed last month, but Hospira recently said the fixes will take several more months.

 - see the Reuters news