In February, Pfizer announced the planned acquisition of Hospira, the world’s leading provider of injectable drugs and infusion technologies and a global leader in biosimilars, for $90 a share in cash for a total enterprise value of approximately $17 billion.
The Commission’s decision includes Pfizer’s commitment to divest certain assets.
Commenting on the EC approval, Ian Read, chairman and chief executive officer of Pfizer, said, “We are pleased to have achieved a significant milestone for Pfizer’s pending acquisition of Hospira with the EC’s approval of the transaction. We continue to work cooperatively with the regulatory agencies to obtain the requisite approvals, and continue to expect the transaction to close in the second half of 2015.”
Pfizer plan to expand the reach of Hospira’s products
The acquisition of Hospira will add a growing revenue stream and a platform for growth for Pfizer. The expanded portfolio of sterile injectable pharmaceuticals, composed of Hospira’s broad generic sterile injectables product line, including acute care and oncology injectables, with a number of differentiated presentations, as well as its biosimilars portfolio, combined with Pfizer’s branded sterile injectables, including anti-infectives, anti-inflammatories and cytotoxics, will create a leading global sterile injectables business. Pfizer has said that it hopes to significantly expand the reach of Hospira’s products, which are currently distributed primarily in the United States, to Europe and key emerging markets.
Commenting in February when the acquisition was announced, John Young, group president, Pfizer Global Established Pharmaceutical business, said, “The addition of Hospira has the potential to fundamentally improve the growth trajectory of the Global Established Pharmaceutical business, vault it into a leadership position in the large and growing off-patent sterile injectables marketplace by combining the specialized talent and capabilities of both companies, including enhanced manufacturing, and advance its goal to be among the world’s most preeminent biosimilars providers. We’re excited to combine Hospira’s expertise and key talent with that of Pfizer to create a leading global business that will deliver an even broader portfolio of important and life-saving sterile injectable medicines to patients around the world.”
Completion of the transaction remains subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, governmental and regulatory approvals in certain other jurisdictions and other usual and customary closing conditions.
By Victoria White