Monday 20 November 2017

Pfizer to buy drugmaker Hospira for $15bn


Vidya L Nathan and Natalie Grover

Drugmaker Pfizer said yesterday it would buy Hospira for about $15bn to boost its portfolio of generic injectible drugs and biosimilars, or copies of biotech drugs.

Pfizer offered $90 per share in cash, a 39pc premium to Hospira's closing stock price on Wednesday. Hospira soared 35pc to near $88 before the bell yesterday. Pfizer was up 3.6pc.

For Pfizer, the deal is the largest since its failed takeover attempt of AstraZeneca, which rebuffed its $118bn approach last year but has remained a subject of takeover speculation.

Pfizer said the latest move showed its commitment to deploy capital and deliver revenue and earnings per share growth in the near term. The deal is expected to add 10 cents to 12 cents per share to Pfizer's earnings in the first full year after the deal closes, it said.

The move will increase Pfizer's business in established drugs, or those not covered by patents. Hospira makes generic versions of injectible drugs used in hospitals. (Reuters)

Irish Independent

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