German healthcare service provider Fresenius Medical Care (NYSE:FMS) increased its 2023 outlook for its pharmaceutical division Kabi on Thursday, citing demand for clinical nutrition, biosimilars, and plasma products.
Ahead of an investor event, Fresenius (FMS) said that sales at Kabi, adjusted for forex changes, would rise by a "mid-single-digit" percentage, and its operating margins would reach 14% of sales for the year. That compared favorably to the company's previous forecasts of "low-to mid-single-digit" growth and 13%, respectively.
FMS also projects Kabi's operating profit margin would hit the upper end of its medium-term target of 14%-17% by 2026.
Kabi is "being there when there is more demand for plasma and when demand for clinical nutrition in hospitals is returning to pre-COVID levels," Reuters reported quoting Fresenius' (FMS) recently appointed CEO, Michael Sen.
Kabi, which accounted for 19% of FMS' Q1 sales, has also invested significantly in its budding biosimilar business and started to launch products in the U.S.