Hospira Buys Manufacturing Facilities For $200M
LAKE FOREST, Ill. (AP) — Hospira Inc. said Wednesday that it will pay $200 million to buy antibiotic manufacturing and research and development facilities from an Indian drug company.
Hospira is buying the facility in Aurangabad from Orchid Chemicals & Pharmaceuticals. Hospira said the acquisition should reduce its costs, help it maintain its supply of key antibiotics like penicillin, and help develop future products. Hospira is also gaining a research and development plant in Chennai that will focus on pharmaceutical ingredients including penicillin.
The purchase has been approved by the boards of directors of both companies and will be voted on by Orchid shareholders. Hospira said it expects the deal to close in the fourth quarter.
Hospira also acquired an injectable generic drug business from Orchid in 2010.
Shares of Hospira rose 11 cents to $33.47 in morning trading.