Pfizer Set to Acquire Hospira for $15 Billion
Pfizer Set to Acquire Hospira for $15 Billion
In its first major deal since the collapse of its effort to buy AstraZeneca last year, US drugmaker Pfizer has announced that it will acquire compatriot Hospira, a manufacturer of injectable drugs, for $15.2 billion.
Including debt, the deal set to close in the second half of 2016 is valued at around $17 billion. Hospira was spun off from Abbot in 2004.
Reports said Pfizer, which is looking for new sources of revenue as its drugs come off patent, is paying 20 times Hospira's EBITDA.
Global sales of Hospira's injectables are expected to reach $70 billion by 2020. The market for its biosimilars portfolio is projected to reach $20 billion in the same time period.
The announcement of the planned takeover has rekindled rumors that Pfizer is planning to split the company.
While saying there are as yet no formal plans for a split, Pfizer CEO Ian Read said the drugmaker is already managing two separate businesses, one innovative, the other established.
Pfizer said the deal with Hospira should result in $400 million in annual cost saving by 2018. The drugmaker plans to finance the deal with existing cash andfresh debt.
