Status Report: APP Pharmaceuticals - Fresenius

| About: American Pharmaceutical (APPX)

The acquisition of APP Pharmaceuticals, Inc. (APPX) by Fresenius looks to be fairly routine from a regulatory standpoint, as APPX's injectable products compete in an extremely robust market. Its primary competitors are major players such as Bedford, Baxter, Teva, and Hospira, all of which have increased their presence in the injectables market by acquiring APP's competitors in recent years (see this FTC Consent Order regarding Mayne/Hospira).

Of importance from a competitive perspective is the fact that Fresenius' Kabi unit offers a variety of "infusion therapies", but does not offer injectables pharmaceuticals similar to APPX's products, nor does its infusion products address the treatment areas (oncology, anti-infectives, critical care) of APPX. In short, there appears to be literally no competition issues associated with this combination.

Since APPX's products are primarily sold within the U.S. (and exclusively manufactured in the U.S. and Puerto Rico), major review outside the U.S. are currently perceived as very unlikely.

Assuming the companies are able to submit the initial proxy/registration statement in before the end of this month, or in early August, Fresenius should have little difficulty completing this transaction by mid/late-September 2008.

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