FTC Okays Pfizer's $15 Bln. Acquisition Of Hospira - Update

(RTTNews) - Pfizer Inc (PFE) on Monday said the U.S. Federal Trade Commission has approved its $15.2 billion acquisition of Hospira Inc (HSP) and expects to close the merger by September.

The drugmaker said the FTC's clearance is subject to Pfizer's commitment to divest four U.S. sterile injectable assets, including Acetylcysteine, Clindamycin, Voriconazole and Melphalan.

Earlier this month, Pfizer obtained European approval for the deal, but after agreeing to certain divestitures to stabilize prices and protect the development of drugs.

Regulators were concerned that the merger would enable the two companies to dominate the market for some sterile injectable drugs.

Pfizer also said Brazil's Superintendency-General of CADE has approved the merger.

In February, Pfizer agreed to buy Hospira, the world's largest producer of injectable drugs, for $15.23 billion in cash to improve the growth trajectory of its global established pharmaceutical business.

Pfizer expects the acquisition to be immediately accretive upon closing. The deal is expected to add $0.10 to $0.12 per share to Pfizer's earnings for the first full year after closing. The New York-based company also expects the deal to deliver $800 million in annual cost savings by 2018.

The deal comes at a time when Pfizer's revenue continue to be hurt by drug-patent losses and the termination of certain co-promotion collaborations.

Pfizer stock is currently trading at $32.81, down $0.74 or 2.19%, on a volume of 22 million shares on the NYSE.

Hospira is currently trading at $89.86, up $0.35 or 0.39%, on a volume of 4.7 million shares on the NYSE.