Pfizer is expanding its product offerings in a growing medical market with the acquisition of Hospira, a US-based provider of injectable drugs and infusion technologies, for approximately $17bn.
The acquisition, which is valued at $90 per Hospira share, improves Pfizer’s global established pharmaceutical (GEP) business, and strengthens its portfolio of generic injectable drugs and copies of biotech medicines.
Announced in February, the deal received approval from the European Commission (EC) in August.
The EC’s decision includes Pfizer’s commitment to divest certain sterile injectable drugs and its infliximab biosimilar drug, which is currently under development.
Pfizer chairman and chief executive officer Ian Read said: "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.
"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."
Hospira has broad generic sterile injectables product line, including acute care and oncology injectables, with a number of differentiated presentations.
Biosimilars portfolio of Hospira is combined with GEP’s branded sterile injectables, including anti-infectives, anti-inflammatories and cytotoxics.
Currently, Pfizer’s GEP business now has a robust portfolio of both generic and branded products.
GEP has significantly advanced its biosimilars business with a broadened portfolio of marketed products and pipeline assets, which will benefit from Pfizer’s best-in-class capabilities in monoclonal antibody development and manufacturing.
The company noted that the global sales of biosimilars are expected to reach $20bn by 2020 and the acquisition of Hospira is expected to generate $800m in cost savings by 2018.
Image: Pfizer world headquarters. Photo: courtesy of Jim.henderson.