Hospira to Acquire API Manufacturing, R&D Facilities in India

Hospira to Acquire API Manufacturing, R&D Facilities in India

Hospira Inc., a provider of injectable drugs and infusion technologies, paid the Chennai-based company $200 million.

Hospira, Inc. (IW 500/224), based in Lake Forrest, Ill., announced on Wednesday that it will acquired an active pharmaceutical ingredient (API) manufacturing facility, together with an R&D facility, from Orchid Chemicals & Pharmaceuticals Ltd.

Hospira, a provider of injectable drugs and infusion technologies, paid the Chennai-based company $200 million.

"Our decision to acquire Orchid's world-class API facility demonstrates Hospira's continued dedication to the antibiotics space, enhancing cost-competitiveness and ensuring continuity of supply," said Dr. C. Bhaktavatsala Rao, managing director, Hospira India. "This is a top-of-the-line API manufacturing facility that has been recognized by industry leaders for its high standards."

Acquisition of the U.S. Food and Drug Administration-approved facility is expected to reduce Hospira's costs, support continuity of supply of key antibiotic products and pave the way for future API development.

The proposed acquisition, which follows Hospira's 2010 purchase of Orchid's generic injectable finished-dosage form pharmaceuticals business, will enable Hospira to vertically integrate into certain critical beta-lactam antibiotic APIs (penems and penicillins), and is also expected to improve Hospira's standard cost position in this therapeutic space.

In addition, controlling the source of these beta-lactam APIs will improve the company's security of supply. Orchid will retain its cephalosporin API business and facilities, and will continue to supply Hospira with this associated API.

Beta-lactam antibiotics represent a class of drugs with a wide spectrum of antibacterial activity. Hospira's imipenem-cilastatin and meropenem injectable beta-lactams have both had successful introductions recently in a number of markets, including Europe and the United States, and today command leading market positions.

The Aurangabad, India, facility, staffed by approximately 640 employees including chemists, engineers and technicians, received the International Society of Pharmaceutical Engineering's Facility of the Year Award for Regional Excellence in 2009.

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