Replies to post #1850 on Fresenius Kabi Pharmaceuticals (APCVZ)

[Redlegs]

I'm P**sed the guy that wrote the article stated as fact that the approvals were a direct correlation with APCVZ.

[research1st]

The Long And Short Of Fresenius Kabi Pharma

Date: 16 May 2010





(RTTNews) - Fresenius Kabi Pharmaceuticals Holding Inc. (APCVZ) on Thursday was granted tentative approval and approval for two of its Abbreviated New Drug Applications for cancer drugs - Letrozole and Bicalutamid, respectively. The company has yet to release the news.

Letrozole, manufactured by Novartis AG (NVS) , marketed as Femara, is approved by the FDA for certain types of breast cancer. Femara notched up $1.3 billion in sales in 2009, up 12% over 2008. (in terms of US$).

Bicalutamid, made by AstraZeneca PLC (AZN), marketed as Casodex, is approved for the treatment of prostate cancer. In 2009, Casodex sales were $844 million, down 34%, following expiry of patents in all major territories.

Fresenius Kabi Pharma, which manufactures and markets injectable pharmaceutical products, is a wholly-owned subsidiary of Fresenius Kabi AG. For readers who are new to Fresenius Kabi Pharma, here's a point. APCVZ is a CVR ( Contingent Value Right) and not a common share.

Fresenius Kabi Pharma was formed on July 2, 2008, in order to facilitate the acquisition of APP Pharmaceuticals Inc. Under the terms of the agreement, Fresenius acquired the outstanding common stock of APP for $23.00 in cash per share plus a CVR that could deliver up to an additional $980 million, or $6.00 per CVR in cash, if the financial results of APP meet certain targets.

On September 10, 2008, Fresenius Kabi Pharma completed the acquisition of APP Pharma. The CVRs related to the acquisition of APP by Fresenius Kabi, began trading under the symbol "APCVZ" on the NASDAQ Global Market from September 11, 2008.

As mentioned, the $6.00 per CVR in cash is payable only if certain targets like adjusted EBITDA are met for the CVR measuring period (Jan. 1, 2008 through Dec.31, 2010).

For the three years ending December 31, 2010, the adjusted EBITDA of APP and FKP Holdings and their subsidiaries on a consolidated basis should exceed $1.267 billion. If it does not exceed this threshold amount, no amounts will be payable on the CVRs and the CVRs will expire valueless.

For the cumulative period beginning January 1, 2008 through March 31, 2010, the adjusted EBITDA on a consolidated basis is $735.9 million. Therefore, over the next three quarters, the company needs to achieve an adjusted EBITDA of not less than $531 million.

In the quarter ended March 31, 2010, the company earned $11.86 million, compared to a loss of $11.10 million in the year-ago quarter. The net revenues for the quarter improved 12% to $192 million. The total operating expenses for the quarter dropped 8% to $42.4 million.

Since June 1, 1998 through December 31, 2009, the company has received a total of 87 product approvals. In a SEC filing dated February 23, 2010, Fresenius Kabi Pharma said that it has over 30 ANDAs pending with the FDA and over 70 product candidates under development across its oncology, anti-infective and critical care product categories.

APCVZ gained more than 51% on Friday to close the trade at $0.17 on a volume of 18 million.