Hospira helps hospitals heal the hurting. The firm makes specialty injectable pharmaceuticals (primarily generics) including cardiovascular, anesthesia, oncology, and anti-infective therapies, as well as related drug delivery systems such as prefilled syringes. Its more complicated medication delivery systems include electronic drug pumps and related medication management software. In addition, Hospira makes IV nutritional solutions and provides contract manufacturing services. Key customers include hospitals, alternate site facilities (such as nursing and outpatient surgical care facilities), wholesalers, and other drug manufacturers. Pfizer acquired Hospira for some $17 billion in 2015.
Change in Company Type
Pfizer was particularly interested in adding Hospira's offerings to its existing portfolio of generic injectable drugs and biosimilars (generic biotech drugs). Combined, the group is one of the industry's leading biosimilars producers. Hospira now operates as a subsidiary of Pfizer.
The US market accounts for most of Hospira's annual revenues but the company's reach covers more than 70 countries on five continents. The company markets its products in other portions of the Americas, the Asia/Pacific region, and the EMEA region. It also runs 15 manufacturing facilities globally. The firm outsources some production to third-party suppliers.
Sales and Marketing
In addition to a direct sales force, Hospira operates marketing and distribution centers across the US.
For existing customers, it offers a variety of online self-service tools.
In the EMEA and Asia/Pacific regions, the company primarily serves hospitals and wholesalers via individual contracts.
Hospira works to grow its product offerings and keep its development pipeline flowing through a number of growth strategies including acquisitions, licensing deals, and partnered and independent R&D efforts. Hospira's internal research programs are largely focused on the areas of generic specialty injectable pharmaceuticals. The company introduces a number of new generic injectables each year, and it is working to move existing products into new countries. In addition, Hospira is looking to develop new generic injectable biosimilars, non-generic specialty injectables, and medication management systems.
In 2016, Hospira launched its LifeCare PCA 7.0 Infusion System, which provides for auto-programming of devices and streamlines documentation of infusion data. In 2015 the company extended its partnership with Cerner to enhance the interoperability between its smart IV infusion devices and Cerner's CareAware technology.
To reduce expenses, the company closed its Clayton, North Carolina, manufacturing facility in 2015. Two years later, it announced plans to slowly shutter its plant in the Dominican Republic; those operations are being moved to Costa Rica.
Also that year, Hospira was acquired by pharmaceutical giant Pfizer. By purchasing Hospira, Pfizer grew its Global Established Pharmaceutical segment, which specializes in sterile injectable products and biosimilars. Combined, the company will work to build a leading position in the two markets, the value of which are expected to grow to some $70 billion and $20 billion, respectively, by the year 2020.
Almost immediately after the acquisition, Pfizer began selling off Hospira assets, partly to meet antitrust regulations and partly to divest some of Hospira's struggling operations. In February 2017, Pfizer sold Hospira Infusion Systems to ICU Medical for $900 million. Other moves include the closures of Hospira's logistics centers in Atlanta, Dallas, Los Angeles, and King of Prussia, Pennsylvania, as well as a manufacturing center in Boulder, Colorado.
Hospira was formed through the spinoff of drug manufacturer Abbott Laboratories' hospital supplies business in 2004.