The $218 million takeover gives Hospira an API plant and 665 staff in Aurangabad, India, furthering its ambition to become less reliant on third-party ingredient suppliers.
Hospira plans to invest $120 million in its McPherson, Kansas, production plant over the next 5 years, with the money going towards additional production lines and automated visual inspection systems.
Hospira, which had to cede market share when its own manufacturing issues led to extensive remediation at its key U.S. plant, is now benefiting from someone else's missteps.
Biolyse is scrambling to convince regulators that its manufacturing standards meet their expectations before competitors eat its lunch, but the company's president says if authorities don't soon lift the suspension Biolyse will go bankrupt as competitors grab its market share for its only product.
Hospira is initiating a nationwide recall of the docking station used to power up the GemStar infusion pump.. The GemStar Docking Station may fail to power up the GemStar Phase 3 pump as intended, Hospira said in a statement.
In the past, Hospira competitors have been able to take advantage of the drugmaker's absence from a market because of its plant problems, filling the void and their pockets as well, at Hospira's expense. More recently it has been Hospira's chance to live large off of the quality issues of others. The company's improved Q1 earnings were, in part, due to "off contract" prices.
Sterile injectable drug maker Hospira last year ramped up production of the sedative and analgesic propofol, a drug CEO F. Michael Ball said he knew the market was anxious to see a bigger supply of. But the drugmaker is now recalling 7 lots of the drug because glass and metal particles have been found in some vial samples.
Hospira is one step closer to selling a Herceptin biosimilar in Britain. The U.S.-based drugmaker persuaded a U.K. court to overturn two Roche patents on the drug. And that means, as of now, Herceptin (trastuzumab) could be open to biosim competition when its main patent expires July 28.
Costs mount quickly when manufacturing issues are bad enough to attract the FDA's attention. There can be a substantial hit to value if investors get freaked out, and sometimes that can lead to litigation that makes the proposition even more expensive. That is what happened to Hospira, which has agreed to pay $60 million to settle an investor lawsuit.
Hospira is getting past quality issues that for several years dominated its attention and undermined its revenues. Now it has unburdened itself of litigation that came along with it.