CORRECTED-UPDATE 1-Fresenius Q3 profit up on higher drug sales

(Corrects to "lower" limit from "upper" limit in last bullet point, corrects FMC's average U.S. revenue per treatment to $348 from $349 in penultimate paragraph)

* Fresenius Q3 adj net income 128 mln eur v poll avg 123 mln

* Fresenius confirms full-year outlook

* Subsidiary FMC's Q3 net income $225, matching estimates

* FMC raises lower limit of FY profit outlook range

FRANKFURT, Nov 3 (Reuters) - German healthcare conglomerate Fresenius's (FREG_p.DE) third-quarter net income rose more than expected on sales of new products at its generic infusion drugs business and helped by its heparin monopoly in the United States.

Fresenius, a March entrant to Germany's blue chip index DAX .GDAXI, on Tuesday confirmed its target of a 10 percent gain in adjusted net income in 2009. Revenue excluding currency effects would rise by more than 10 percent, it repeated.

Quarterly net income before special items advanced 14 percent to 128 million euros ($189.1 million), slightly more than the average estimate of 123 million euros in a Reuters poll.

Results were boosted by Fresenius's $3.7 billion acquisition of APP, a U.S. supplier of generic infusion drugs, last year.

APP became the sole provider of blood thinner heparin -- a key dialysis drug -- in the United States after fatalities forced Baxter (BAX.N) to recall its heparin product in early 2008.

But medical gear and drugs supplier Hospira (HSP.N) won U.S. regulatory approval for its heparin products on Aug. 31, spelling the end of APP's monopoly.

Quarterly sales gained 16 percent to 3.53 billion euros, above an average analyst estimate of 3.50 billion.

Fresenius, which traces its roots to a 15th century pharmacy that still exists today, trades at 11 times estimated 12-month forward earnings, based on StarMine, which weights estimates according to analysts' track records.

That is below the multiple of about 15 for the healthcare equipment industry, amid delays in APP's product launches and looming competition for heparin.

The shares have underperformed the European healthcare sector over the past six months.

FMC OUTLOOK BRIGHTENS

Fresenius subsidiary Fresenius Medical Care (FMC) (FMEG.DE), the world's largest kidney dialysis company, lifted the lower limit of its profit outlook range as revenue per treatment in its biggest market, the U.S., rose and procurement costs slid, FMC said on Tuesday.

FMC, which generates more than two-thirds of its sales in North America, said it now saw 2009 net income rising to $865-$890 million, raising the lower limit from $850 million.

Third-quarter net income rose 9 percent to $225 million, in line with analyst expectations.

In addition, it said full-year revenue would be about $11.2 billion, compared with a previous outlook of above $11.1 billion and more than the 2008 figure of $10.6 billion.

Average revenue per dialysis treatment in the United States rose 4.5 percent to $348 amid higher reimbursement from private insurers and higher use of medication.

FMC competes mainly with Baxter International (BAX.N) for the dialysis equipment market and it dominates the U.S. dialysis market along with rival DaVita (DVA.N). (Reporting by Ludwig Burger)