Valued at $90 per Hospira share, the acquisition is expected to improve Pfizer’s Global Established Pharmaceutical (GEP) Business as well as strengthen its portfolio of generic injectable drugs and copies of biotech medicines.
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.
Pfizer chairman and chief executive officer Ian Read said: "The proposed acquisition of Hospira demonstrates our commitment to prudently deploy capital to create shareholder value and deliver incremental revenue and EPS growth in the near-term.
"In addition, Hospira’s business aligns well with our new commercial structure and is an excellent strategic fit for our Global Established Pharmaceutical business, which will benefit from a significantly enhanced product portfolio in growing markets.
"Coupled with Pfizer’s global reach, Hospira is expected to drive greater sustainability for our Global Established Pharmaceutical business over the long term."
The deal also strengthens GEP’s growth strategy to build a broad portfolio of biosimilars in Pfizer’s therapeutic areas of strength with the addition of Hospira’s portfolio that includes several marketed biosimilars.
Hospira’s products are currently distributed primarily in the US, to Europe and key emerging markets, where GEP has a significant presence.
In order to significantly expand the reach of Hospira’s products, Pfizer will also use its existing commercial capabilities, global scale, scientific expertise and development capabilities.
The global marketplace value for generic sterile injectables and biosimilars is estimated to be around $70bn and $20bn, respectively in 2020.
Subject to customary closing conditions, including regulatory approvals in several jurisdictions and approval of Hospira’s shareholders, the transaction is scheduled to be completed in the second half of 2015.
Image: Pfizer world headquarters. Photo: courtesy of Jim.henderson.