Hospira To Acquire Generic Injectable Pharmaceuticals Business From Orchid

Hospira and Orchid Chemicals & Pharmaceuticals have announced an agreement for Hospira to acquire Orchid’s generic injectable finished-dosage form pharmaceuticals business for approximately $400m.

The acquisition includes Orchid’s beta-lactam antibiotics manufacturing complex (comprising cephalosporin, penicillin and carbapenem facilities) and pharmaceutical research and development (R&D) facility at Irungattukottai, Chennai, as well as its generic injectable product portfolio and pipeline.

In addition, the companies signed a long-term exclusive agreement for Orchid to supply active pharmaceutical ingredients (APIs) for the acquired generic injectable pharmaceuticals business. This agreement builds on the existing product development and commercialization relationship between Hospira and Orchid.

Terry Kearney, chief operating officer of Hospira, said: “This acquisition aligns perfectly with Hospira’s strategy to improve our margins and cash flow, by lowering our cost position for a key product line, and to invest for growth, by expanding our presence globally and reinforcing our leadership position in generic injectables.

“Orchid’s quality, speed to market and productivity are hallmarks of its business. We look forward to welcoming our new colleagues from Orchid and leveraging their collective knowledge to meet the evolving needs of Hospira’s customers.”

K Raghavendra Rao, managing director of Orchid, said: “This transaction and the long-term API contract are a testimony to the competitiveness of Orchid’s product portfolio in the global pharmaceuticals landscape, and its established capabilities in aseptic product manufacture.

“We are confident that Hospira will take our generic injectable pharmaceuticals business to even greater heights and provide enhanced career prospects to the employees being transferred. This transaction will provide Orchid with the financial flexibility to pursue new growth opportunities, and build upon our successful track record of value creation for our shareholders.”

Hospira and Orchid are committed to supporting the various current alliances and distribution arrangements of the acquired business.