Pfizer Completes $17 Bn Acquisition of Hospira
Pfizer has completed its previously announced $17 billion acquisition of Hospira. The deal was announced in February 2015. The move adds to Pfizer’s sterile injectables and biosimilars portfolios. Hospira, Inc. is now a subsidiary of Pfizer Inc. The combination of local Pfizer and Hospira entities may be pending in various jurisdictions, and integration is subject to completion of various local legal and regulatory steps.
In announcing the close of the deal, Pfizer offered some market information for sterile injectables and biosimilars, providing market estimates for generic sterile injectables at $70 billion by 2020 and for biosimilars at $20 billion by 2020.
Pfizer expects the transaction will deliver $800 million in annual cost synergies by 2018. Pfizer intends to update its 2015 financial guidance in the coming weeks to incorporate Hospira. The guidance will reflect the anticipated contribution from Hospira operations from the time of the completion of the Hospira merger to Pfizer’s fiscal year end, which is November 30, 2015 for Pfizer's international fiscal year and December 31, 2015 for Pfizer's US fiscal year.