Hospira to acquire manufacturing and research assets from Orchid

Hospira is strengthening its manufacturing and research capabilities with the purchase of new business assets from Orchid Chemicals and Pharmaceuticals.

Under the terms of the deal, Hospira will pay approximately $200 million (126.39 million pounds) to acquire an active pharmaceutical ingredient (API) manufacturing site and an associated research and development facility, both of which are located in India.

They will allow Hospira to reduce operational costs and support continuity of supply of key antibiotic products, while also laying the foundation for the development of future APIs.

In particular, it will help the company to vertically integrate into certain critical beta-lactam antibiotic API, and improve its standard cost position in this therapeutic space.

Dr C Bhaktavatsala Rao, managing director for Hospira in India, said: "We look forward to welcoming our new colleagues from Orchid and leveraging their expertise to continue to bring high-quality, lower-cost products to patients around the world."

Earlier this month, it was announced that former Amgen veteran Dr Dennis Fenton has been appointed to Hospira's board of directors.