Pfizer to Buy Hospira to Bolster Hospital Products

Pfizer (New York, NY, USA) has entered into a definitive merger agreement with Hospira (Lake Forest, IL, USA), in a move designed to significantly enhance their global established pharmaceutical (GEP) business, for a total enterprise value of approximately USD 17 billion.

The strategic complementary combination will add a growing revenue stream from an expanded portfolio of sterile injectable pharmaceuticals, which will be composed of Hospira’s broad generic sterile injectables product line (including acute care and oncology injectables with a number of differentiated presentations), as well as its biosimilars portfolio. Pfizer’s GEP will contribute branded sterile injectables, including anti-infectives, anti-inflammatories, and cytotoxics.

The combination also reinforces GEP’s growth strategy to build a broad portfolio of biosimilars in Pfizer’s therapeutic areas of strength through the addition of Hospira’s portfolio. Pfizer will also use its existing commercial capabilities, global scale, scientific expertise, and development capabilities to significantly expand the reach of Hospira’s products—which are currently distributed primarily in the United States—to Europe and key emerging markets, where GEP has a significant presence.

“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,” said Ian Read, Chairman and CEO of Pfizer. “In addition, coupled with Pfizer’s global reach, Hospira is expected to drive greater sustainability for our GEP business over the long term.”

“The Pfizer-Hospira combination is an excellent strategic fit, presenting a unique opportunity to leverage the complementary strengths of our robust portfolios and rich pipelines,” said F. Michael Ball, CEO of Hospira. “I want to recognize and thank our 19,000 employees around the world for their tireless efforts to deliver more affordable healthcare solutions, increase patient access to high-quality care, and drive sustained growth for our shareholders.”

Both sterile injectables and biosimilars are large and growing categories, with the global marketplace value for generic sterile injectables estimated to be USD 70 billion in 2020; the global marketplace for biosimilars is estimated to grow to approximately USD 20 billion.

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