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On 5 February 2015, just days after gaining the US Food and Drug Administration (FDA) breakthrough approval for Ibrance (palbociclib) in breast cancer, Pfizer entered into an agreement to purchase generic drug maker Hospira for $90 per share in cash, or approximately $17 billion, representing about a 40 percent premium above Hospira's stock price.
The deal comes a number of months after Pfizer's failed attempt to acquire AstraZeneca, a move that signaled the company was trying to stem its losses from the patent cliff through inorganic growth means.
"The purchase of Hospira is expected to be immediately accretive to Pfizer's earnings, adding nearly $4 billion in sales to Pfizer's Global Established Pharmaceutical (GEP) segment sales of almost $25 billion. Hospira's top-line has been relatively flat over the past six years, growing by a Compound Annual Growth Rate (CAGR) of only about 2 percent. However, the company's Specialty Injectable Products business, of primary importance to Pfizer, continues to perform well," said Mr Adam Dion, GlobalData's healthcare industry analyst.
While Hospira's generic specialty injectables product line will be seamlessly integrated into Pfizer's GEP business, Hospira's biosimilar activities are also of key importance to Pfizer's strategic objective.
Hospira currently markets three biosimilars in Europe - Retacrit (erythropoietin zeta), Nivestim (filgrastim), and Inflectra (infliximab), the first biosimilar monoclonal antibody to be approved in Europe.