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Sartorius Posts 12.2% Revenue Rise in Q1 2017

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By Modupe Gbadeyanka

Leading international partner of the biopharmaceutical industry and research laboratories, Sartorius, increased its sales revenue and earnings in the first quarter of 2017 by double digits.

“Both divisions successfully started off the current year. Lab Products & Services achieved considerable organic growth, and with the acquisition of Essen BioScience, it added another innovative product family to its bioanalytics portfolio and further growth potential,” said CEO and Executive Board Chairman Dr. Joachim Kreuzburg.

The substantially above-average market growth for Bioprocess Solutions over the past two years has returned to normal rates, as expected. “In particular, business development in the Americas region was somewhat more moderate in the first quarter; however, we expect demand to pick up over the year,” emphasized Kreuzburg. Management confirms its guidance raised at the beginning of April due to consolidation of its acquisitions: sales for the full year are projected to grow by about 12% to 16% and the company’s earnings margin1 is forecasted to increase by slightly more than 0.5 percentage points.

In the first three months of 2017, Sartorius increased its sales revenue in constant currencies by 12.2% (reported +13.6%) from 301.9 million euros in the year-earlier period to 343.1 million euros. The Asia|Pacific region recorded the strongest growth, with sales up 33.3% to 80.0 million euros. Both Group divisions contributed double-digit gains to this development. In the EMEA2 region, Sartorius generated sales of 151.2 million euros, 8.9% more than in the comparable year-earlier period. First-quarter sales revenue for the Americas region was 111.9 million euros, up 4.9% from a year ago. (All regional figures in constant currencies)

Earnings in the reporting period rose over proportionately again relative to sales. Sartorius thus increased its underlying EBITDA by 17.0% to 84.6 million euros, and its respective margin from 24.0% to 24.7%. Relevant net profit3 for the Group grew by 17.7% from 29.3 million euros to 34.4 million euros. Earnings per ordinary share totalled 0.50 euros (Q1 2016: 0.42 euros4) and earnings per preference share 0.51 euros (Q1 2016: 0.43 euros4).

The Group’s key financial indicators remained at very robust levels following its most recent acquisition of Essen BioScience.

At the end of the reporting period, the ratio of net debt to underlying EBITDA stood at 2.4 and company’s equity ratio was 34.2% (Dec. 31, 2016: 1.5 and 42.0%, resp.). At 12.8%, the capex ratio in the first quarter was within the range expected.

The Bioprocess Solutions Division, which offers a broad range of innovative technologies for the manufacture of biopharmaceuticals, recorded first-quarter sales growth of 9.4% in constant currencies to 251.1 million euros.

Following two years of strong above-average dynamics, market growth in this segment returned to normal rates, as expected. In particular, the development in the Americas region was influenced at the beginning of the year by softer customer demand as well as by temporarily limited delivery capacities for cell culture media.

The division increased its underlying EBITDA over proportionately again with respect to sales, by 12.1% to 68.4 million euros; its margin reached 27.2% relative to 26.9% in the comparable year-earlier period. The acquisition of the software company Umetrics closed at the beginning of April 2017 did not have any effect in the first quarter.

The Lab Products & Services Division, which offers technologies for laboratories, primarily for the pharma sector and public research, significantly increased sales revenue in the first three months of the current year by 21.0% to 92.0 million euros (reported +22.7%). Based on strong demand in all regions and for all product segments, the division reported organic growth of around 10%. Altogether, around 11 percentage points of the division’s growth were contributed by portfolio expansion in the area of bioanalytics due to the acquisitions of IntelliCyt and ViroCyt in mid-2016, as well as Essen BioScience at the end of March 2017. Driven by economies of scale related to strong organic growth and acquisitions, the division’s underlying EBITDA rose sharply by 43.1% to 16.3 million euros; its respective earnings margin improved from 15.2% to 17.7%.

The Sartorius Group confirms its guidance for the current year, which it raised on April 3, 2017, due to its most recent acquisitions of Essen BioScience and Umetrics.

Management thus projects that Group sales revenue for the full year will grow by about 12% to 16% and underlying EBITDA margin will increase slightly more than by half a percentage point over the prior-year figure of 25.0%.

Regarding the two divisions, management anticipates that sales for Bioprocess Solutions will grow by about 9% to 13% and that the division’s underlying EBITDA margin will rise by around half a percentage point (prior-year figure: 28.0%). For the Lab Products & Services Division, Group management projects that, assuming an overall stable economic environment, sales will increase by about 20% to 24% and the division’s underlying EBITDA margin will rise by nearly two percentage points compared with the prior-year figure of 16.0%. (All forecasts are based on constant currencies)

The capex ratio for the current fiscal year is projected to remain at around 12% to 15%.

The ratio of net debt to underlying EBITDA at year-end is expected to remain about at the current level of 2.4 (Dec. 31, 2016: 1.5) as a result of the company’s most recent acquisitions. Any further acquisitions have not been considered in these projections.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Health

NARD Suspends Indefinite Strike, Gives FG Fresh Two-Week Ultimatum

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resident doctors strike

By Adedapo Adesanya

The Nigerian Association of Resident Doctors (NARD) has suspended its planned nationwide indefinite strike, granting the federal government a two-week ultimatum to address lingering welfare issues affecting resident doctors across the country.

The decision was taken after an emergency meeting of the association’s National Executive Council on Tuesday, where members reviewed assurances from government representatives and resolved to give dialogue another chance.

NARD said the suspension was informed by “progress made” in negotiations, particularly commitments on the prompt payment of salary arrears, hazard allowances, and steps toward resolving issues surrounding the Medical Residency Training Fund.

The association did not declare a full resolution of the dispute. It noted that the government had shown “renewed willingness” to address the concerns that triggered the strike threat.

The association noted that while these engagements signalled a willingness by the government to resolve the dispute, several critical issues remain outstanding, particularly the delayed payment of promotion arrears, salary arrears, the 2026 Medical Residency Training Fund (MRTF), and the backlog of 19 months’ professional allowance arrears owed to resident doctors.

It also expressed concern over the Federal Government’s decision to halt the implementation of the reviewed PAT, which had earlier triggered widespread dissatisfaction among its members and raised fears of disruption to healthcare services nationwide.

Despite these unresolved issues, NARD said it opted to suspend the strike as a demonstration of goodwill and commitment to ongoing dialogue, while giving the government a two-week window to take concrete, measurable and verifiable steps to meet its demands.

The association insisted on the immediate reversal of the decision affecting the PAT, payment of all outstanding arrears, prompt disbursement of the MRTF, and full settlement of the accumulated professional allowance backlog.

It warned that it would reconvene at the expiration of the ultimatum to assess the level of compliance and determine its next course of action, adding that failure by the government to meet its demands within the stipulated timeframe would result in the resumption of the suspended strike without further notice.

NARD also called on its members nationwide to remain calm, united and resolute, while urging the Federal Government to act swiftly to prevent a potential crisis in the health sector.

The association further appreciated the interventions of the Vice President and other stakeholders, expressing hope that their involvement would lead to the timely resolution of the dispute and help sustain healthcare delivery across the country.

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Jacaranda Gets Funds to Expand Affordable Maternal Healthcare in Kenya

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Jacaranda Maternity

By Modupe Gbadeyanka

To expand affordable healthcare in Kenya, Swedfund has invested about $600,000 into Jacaranda Health Limited (Jacaranda Maternity) to support innovations in neonatal intensive care and strengthen Jacaranda’s ability to provide life-saving services to underserved populations.

Jacaranda Maternity provides high-quality maternal health care at more affordable pricing than typical private providers, focusing on women in Nairobi’s low- and middle-income communities.

The new funding will support the opening of new hospitals, upgrading of neonatal care, and improvements to existing facilities.

Maternal and newborn health outcomes in Kenya remain a challenge, with maternal mortality still high despite improvements in skilled birth attendance.

Public health facilities play a central role but face capacity constraints, while access to reliable, quality care varies across regions and income groups.

Private healthcare providers offering essential maternity services at accessible price points can complement public provision.

Jacaranda Maternity aims to expand its network to six hospitals to achieve financial sustainability while scaling its impact. The healthcare provider is a recognised leader in promoting women’s health, with 71 percent of its staff being women, and a track record of effective environmental and social management.

“This investment will help Jacaranda Maternity provide life-saving care to more women and families while furthering Swedfund’s mission to promote inclusive and sustainable healthcare,” a Senior Investment Manager at Swedfund, Audrey Obara, said.

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Nigeria Secures $350,000 FAO Support to Tackle Rising Bird Flu

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By Adedapo Adesanya

Nigeria will get a $350,000 intervention from the Food and Agriculture Organisation of the United Nations (FAO) to support its response to the ongoing outbreak of Highly Pathogenic Avian Influenza (bird flu) and strengthen the country’s animal health systems.

An agreement was reached on Wednesday during a strategic meeting between the Minister of Livestock Development, Mr Idi Mukhtar Maiha, and the FAO Representative to Nigeria and the Economic Community of West African States, Mr Hussein Gadain, in Abuja.

The intervention, approved under FAO’s Technical Cooperation Programme, will support disease containment efforts in 11 affected states and enhance surveillance, coordination and response mechanisms to prevent further spread of the disease.

Speaking during the meeting, Maiha said effective disease control remains critical to improving livestock productivity and protecting the livelihoods of farmers across the country.

He explained that factors such as drought, scarcity of feed, interaction between livestock and wildlife, as well as cross-border movement of animals have contributed to the spread of diseases in some areas.

“We must continue to strengthen our animal health systems and build the capacity required to respond effectively to disease outbreaks. Our collaboration with FAO will help protect livestock assets, improve productivity and support the broader transformation of the sector,” the minister said.

Mr Gadain commended the federal government’s commitment to the development of the livestock sector and assured that FAO would continue to provide technical support to Nigeria.

He stressed the need to strengthen veterinary services at the state and community levels, improve early detection of diseases and promote biosecurity practices among livestock farmers.

The meeting also reviewed progress on the global campaign to eradicate Peste des Petits Ruminants, a highly contagious disease that affects sheep and goats.

To advance the initiative, the ministry plans to convene a national technical meeting involving veterinary institutions, researchers and practitioners to review Nigeria’s eradication strategy and address gaps in vaccine supply.

As part of preparations, the ministry will engage the National Veterinary Research Institute to assess its vaccine production capacity while exploring other options for vaccine procurement to meet national demand.

Both parties also agreed to accelerate Nigeria’s access to financing under the Pandemic Fund through the One Health approach in collaboration with the Nigeria Centre for Disease Control and the Federal Ministry of Health to strengthen preparedness and response to zoonotic diseases.

Plans are also underway for the Director-General of FAO to participate in the Antimicrobial Resistance Conference scheduled for June 2026 in Abuja, where President Bola Tinubu is expected to be recognised as the African Champion for the eradication of Peste des Petits Ruminants.

The meeting further agreed to inaugurate a Livestock Donor Working Group to coordinate development partner support and advance key initiatives, including the development of a national feed and fodder strategy aimed at improving productivity and sustainability in the livestock sector.

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