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SOURCE Hospira, Inc.
-- Purchase enhances cost-competitiveness, paves way for future development --
LAKE FOREST, Ill., July 4, 2014 /PRNewswire/ -- Hospira, Inc. (NYSE: HSP), the world's leading provider of injectable drugs and infusion technologies, today announced it has completed the acquisition of an active pharmaceutical ingredient (API) manufacturing facility and an associated research and development (R&D) facility from Orchid Chemicals & Pharmaceuticals Ltd. (BSE: 524372, NSE: ORCHIDCHEM), a leading Indian pharmaceuticals company, for approximately $218 million, after settling prior advances of approximately $30 million.
"Hospira's acquisition of the Orchid API facility will support supply continuity of key beta-lactam antibiotic products, improve our cost position and pave the way for future API development," said Dr. C. Bhaktavatsala Rao, president and managing director, Hospira India. "We're committed to the antibiotics space, and with our new colleagues from Orchid, we will continue to bring high-quality, lower-cost products to patients around the world."
The acquisition enables Hospira, already a leader in certain critical antibiotic injectable products, to vertically integrate into the beta-lactam antibiotic APIs (penems and penicillins), and is also expected to improve Hospira's cost position in this therapeutic space. In addition, backward integration into these beta-lactam APIs will improve the company's security of supply. Beta-lactam antibiotics represent a class of drugs with a wide spectrum of antibacterial activity.
The API manufacturing facility -- which is located in Aurangabad, India -- has capabilities for manufacturing sterile APIs and employs approximately 665 employees including chemists, engineers and technicians. Hospira's purchase also includes an associated Orchid R&D facility based in Chennai, India, that will be directed primarily to beta-lactam and other API development with approximately 110 scientific personnel.
Post deal, Orchid retains its cephalosporin API business and facilities, and also certain non-antibiotic, non-sterile businesses and facilities it owns. Orchid will continue to supply Hospira with cephalosporin APIs.
The transaction between Hospira and Orchid, announced in August 2012, has received all necessary regulatory and legal approvals.
Hospira, Inc. is the world's leading provider of injectable drugs and infusion technologies, and a global leader in biosimilars. Through its broad, integrated portfolio, Hospira is uniquely positioned to Advance Wellness™ by improving patient and caregiver safety while reducing healthcare costs. The company is headquartered in Lake Forest, Ill., and has approximately 17,000 employees. Learn more at www.hospira.com.
Hospira Healthcare India Private Limited ("Hospira India"), based in Chennai, India, is a wholly owned subsidiary of Hospira, Inc.
Private Securities Litigation Reform Act of 1995 --
A Caution Concerning Forward-Looking Statements
This press release contains, or may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Hospira's acquisition of active pharmaceutical ingredient manufacturing and R&D facilities. Hospira cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, regulatory, legal, technological, manufacturing, supply, quality and other factors that may affect Hospira's operations, and may cause actual results to be materially different from expectations also include the risks, uncertainties and factors discussed under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Hospira's latest Annual Report on Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission, which are incorporated by reference. Hospira undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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