Pfizer announced it has completed its $17 billion acquisition of US-based pharmaceutical and medical device company, Hospira. Pfizer is diversifying its medical portfolio by acquiring the injectable drugs and infusion technologies manufacturer.
The deal was initially announced in February of this year, and it received European Commission (EC) approval last month. The addition of Hospira to Pfizer’s register of subsidiaries is expected to benefit the company’s global established pharmaceutical (GEP) business.
Pfizer will pay approximately $90 per share, to gain control of the generic medicines and injectables manufacturer. Under the terms of the EC’s approval, Pfizer must divest specific sterile injectable drugs, as well as their in-development infliximab biosimilar.
“We are pleased that Hospira, the world’s leading provider of injectable drugs and infusion technologies and a global leader in biosimilars, is now part of Pfizer. We want to welcome our new Hospira colleagues to Pfizer. We are excited to add their talents and proud of the shared commitment of all Pfizer colleagues to serving patients worldwide,” said Pfizer chairman and chief executive officer Ian Read.
Hospira’s generic sterile injectable product line includes oncology and acute care formulas. Hospira’s biosimilars will make a nice addition to Pfizer’s GEP business, which already includes a number of branded injectables such as anti-infectives, anti-inflammatories and cytotoxics.
Read further commented, “We believe that through this transaction, we’ve created value for our shareholders by delivering incremental revenue and expected EPS growth in the near-term by strengthening our GEP business and positioning it for future growth.”
Pfizer’s diversified portfolio of biosimilars and pipeline assets are expected to benefit from its expertise in monoclonal antibody development and manufacturing. As the global sales of biosimilar drugs are expected to hit $20 billion by 2020, this recent acquisition positions Pfizer as a key player in the market. The company noted that the acquisition of Hospira is expected to provide a cost savings of $800 million by 2018.
- Pfizer completes $17bn acquisition of Hospira – http://www.pharmaceutical-technology.com/news/newspfizer-completes-17bn-acquisition-of-hospira-4663440