February 6, 2015 / 9:44 AM / in 3 years

BUZZ-Fresenius shares drop as Pfizer-Hospira deal seen as threat

** Shares in healthcare group Fresenius drop 3 pct, top decliners on the DAX after Jefferies cuts its recommendation, saying the planned takeover of rival Hospira by Pfizer could hurt long-term growth

** Hospira, a rival of Fresenius’s generic infusion drugs unit Kabi, will benefit from new marketing channels opened up by Pfizer, according to Jefferies analysts, who downgrade the stock to “hold” from “buy”

** “We feel that Kabi’s structural incremental growth opportunities from cross-selling are now somewhat more limited. We are concerned that Kabi might suffer from a hard push by a combined Pfizer-Hospira entity in ex-U.S. markets, where Hospira didn’t represent a material threat in the past.”

** The shares have gained more than 20 pct over the last three months, helped by news of new product launches and favourable currency development

** “We feel the timing is right to take profits and look to buy into the next dip,” the brokerage says (RM: ludwig.burger.thomsonreuters.com@reuters.net)

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