New York, Feb 5 (AP) Pfizer is buying Hospira for approximately USD 15.23 billion, saying it is a good fit with its established global pharmaceutical business.
The buyout will also help Pfizer tap into the growing market for biosimilars, which are cheaper versions of biologic drugs that are used to treat conditions such as anemia.
Shares of both companies rose in morning trading today. Hospira Inc., based in Lake Forest, Illinois, is a provider of injectable drugs and infusion technologies.
It also offers biosimilars. Hospira announced last month that it was seeking approval from the Food and Drug Administration for Retacrit, a proposed biosimilar to the anemia treatments Epogen from Amgen and Procrit from Janssen. Pfizer Inc. will pay USD 90 per share in cash, which is a 39 percent premium to Hospira's yesterday closing price of USD 64.80.
The companies put the deal's value at about USD 17 billion including debt. Pfizer which is the world's second-largest drugmaker by revenue said that it will use its global network to help expand Hospira's reach to Europe and key emerging markets.
Hospira's products are currently distributed mostly in the US Pfizer, a Dow component whose products include Viagra and painkiller Celebrex, has been under pressure from investors to boost its share price.
The company has sold and spun off big parts of its business over the last few years, including animal health, nutrition and a capsule-making unit.
This has helped, but hasn't satisfied detractors. Shares of Hospira soared USD 22.70, or 35 percent, to USD 87.50 in morning trading. Pfizer's stock added USD 1.03, or 3.2 percent, to USD 33.10.