US pharmaceutical giant Pfizer will expand its line of drugs and therapies with the $17 billion takeover of Hospira, the two companies announced Thursday. The deal, approved by the boards of both companies, will importantly add Hospira''s portfolio of sterile injectable treatments and biosimilar drugs to Pfizer''s broad pharma offerings.
Pfizer will pay $90 a share in cash for Hospira, a nearly 40 percent premium. Hospira shares closed at $64.80 on Wednesday, but were up $35 percent in pre-market trade at $87.58. Pfizer shares were up 3.4 percent to $33.17 ahead of the market opening. Pfizer emphasised that Hospira''s product line strategically complements its own and will add a growing international revenue stream. The companies said the market for sterile injectables, injectable drugs which can treat a range of maladies from pain to cancer, will be about $70 billion in 2020.
The world market for biosimilars, officially approved adaptations of off-patent drugs made by others, will hit $20 billion in five years, they said. "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 Pfizer chairman and chief executive Ian Read.
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