LAKE FOREST, Ill., March 30 /PRNewswire-FirstCall/ -- Hospira, Inc.
(NYSE: HSP), the world leader in generic injectable
pharmaceuticals, today announced it has completed the acquisition
of the generic injectable pharmaceuticals business of Orchid
Chemicals & Pharmaceuticals Ltd. (BSE: 524372, NSE:
ORCHIDCHEM), a leading Indian pharmaceuticals company, for
approximately $400 million.
"We are excited to acquire new capabilities that will create
opportunities for commercial growth, position us strongly in a key
antibiotics product area, expand our global footprint and enhance
our ability to provide lower-cost, high-quality products to
patients," said Terry Kearney, chief
operating officer, Hospira. "We're also excited to welcome a
talented base of 450 employees, including newly appointed managing
director, Hospira India, Dr. C.B.
Rao, who joins us with a wealth of diversified industrial
and management experience, and will provide continuity of
leadership for the Orchid team joining Hospira."
Rao will report directly to Kearney.
"Integration of Orchid's injectables formulations business with
Hospira, the global leader in generic injectables, represents a
strong strategic fit. Our team is committed to leveraging our
world-class infrastructure, high-technology product range and
organizational competencies to drive even greater business growth
and strengthen Hospira's leadership position," said Rao.
The acquisition includes Orchid's beta-lactam antibiotic
formulations manufacturing complex (comprising cephalosporin,
penicillin and carbapenem facilities) and pharmaceutical research
and development (R&D) facility at Irungattukottai, Chennai, as well as its generic injectable
dosage-form product portfolio and pipeline. Beta-lactam antibiotics
represent a class of drugs with a wide spectrum of antibacterial
activity, and Orchid is one of the top-five generic beta-lactam
antibiotics manufacturers globally.
In addition, the companies signed a long-term agreement for
Orchid to supply active pharmaceutical ingredients (APIs) for the
acquired generic injectable pharmaceuticals business.
Hospira and Orchid are committed to supporting the various
alliances and distribution arrangements of the acquired business.
To help facilitate the transition process, the two companies have
entered into transitional services agreements for approximately 15
months.
Hospira expects to provide more specific information on the
financial impact of the transaction when it reports first-quarter
2010 results on April 27.
Orchid/Hospira Partnership
In 2005, Mayne Pharma Ltd. (now part of Hospira) and Orchid
entered into a strategic commercialization and development
agreement. Subsequent agreements have added to the scope of
the relationship, and the acquisition gives Hospira the
manufacturing/R&D capabilities, product application ownership
and full commercialization rights to these products, as well as
access to new product licenses and distribution partnerships.
The long-term API agreement with Orchid will also ensure
continuity of supply.
About Hospira
Hospira, Inc. is a global specialty pharmaceutical and
medication delivery company dedicated to Advancing Wellness™. As
the world leader in specialty generic injectable pharmaceuticals,
Hospira offers one of the broadest portfolios of generic acute-care
and oncology injectables, as well as integrated infusion therapy
and medication management solutions. Through its products, Hospira
helps improve the safety, cost and productivity of patient care.
The company is headquartered in Lake
Forest, Ill., USA, and has approximately 13,500 employees.
Learn more at www.hospira.com.
About Orchid
Orchid Chemicals & Pharmaceuticals Ltd. is a leading
pharmaceutical company headquartered in Chennai, India, involved in the development,
manufacture and marketing of diverse bulk actives, formulations and
nutraceuticals. With exports spanning more than 75 countries,
Orchid is the largest manufacturer-exporter of cephalosporin bulk
actives in India and is ranked
amongst the Top 5-cephalosporin producers in the world. Orchid's
world-class manufacturing infrastructure includes multiple USFDA
compliant API and dosage form facilities at Chennai and Aurangabad in India. Orchid has dedicated state-of-the-art
GLP compliant R&D centres for API research, drug discovery and
pharmaceutical research at Chennai,
India. Orchid has ISO 9001:2000, ISO 14001 and OHSAS 18001
certifications. Orchid is listed on the National Stock Exchange
(NSE), Bombay Stock Exchange (BSE) and the Madras Stock Exchange
(MSE) in India. Additional
information is available at the company's website at
www.orchidpharma.com.
Private Securities Litigation Reform Act of 1995 --
A Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. 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, legal,
technological and other factors that may affect Hospira's
operations and may cause actual results to be materially different
from expectations 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, which
is filed with the Securities and Exchange Commission, and
incorporated by reference. Hospira undertakes no obligation to
release publicly any revisions to forward-looking statements as the
result of subsequent events or developments.
SOURCE Hospira, Inc.