Fresenius' Kabi unit prospers on competitors' mistakes

Companies that stumble with their manufacturing can count on a competitor picking up some market share while they are down.

Fresenius is trumpeting the fact that it has done just that. On Monday, the company raised its 2012 guidance for the second time. It was motivated in large part because its Kabi unit, which includes APP Pharmaceuticals in the U.S., has been able to take advantage of shortages caused by its competitors' missteps, Reuters reports. It says its net income before special expenses should grow 12% to 14%.  

In one release, Fresenius says: "Particularly in the U.S., revenue growth has been materially stronger than initially projected mainly due to ongoing IV drug shortages, including propofol, which may continue well into the third quarter." In another release, the company noted that its employee base has increased 7% since the end of last year to 160,249.

The company does not name names, but in May, Hospira ($HSP) reported that a problem at its Clayton, NC, plant led to a temporary shutdown in production resulting in a disruption of supplies of the sedative. Demand for the drug in the U.S. has also been affected by states wanting to use it in executions since one of the drugs traditionally used, also made by Hospira, is no longer available.

- see the Reuters story
- read the Fresenius release
- get more from Fresenius Kabi