Hospira has announced the acquisition of the generic injectable pharmaceuticals business of India's Orchid Chemicals & Pharmaceuticals, for approximately $400m.
The acquisition will provide Hospira with access to Orchid's beta-lactam antibiotic formulations manufacturing complex (comprising cephalosporin, penicillin and carbapenem facilities) and pharmaceutical research and development facility at Irungattukottai, Chennai.
Orchid is one of the top-five global generic beta-lactam antibiotics manufacturers, which represent a class of drugs with a wide spectrum of antibacterial activity.
Hospira CEO Terry Kearney said that the deal would position Hospira strongly in a key antibiotics product area, expand its global footprint and enhance its ability to provide lower-cost, high-quality products to patients.
The company will also gain Orchid's generic injectable dosage-form product portfolio and pipeline.
In addition, the companies signed a long-term agreement for Orchid to supply active pharmaceutical ingredients for the acquired generic injectable pharmaceuticals business.
To help facilitate the transition process, the two companies have entered into transitional services agreements for approximately 15 months.