Hospira Completes Acquisition Of Orchid's API Manufacturing And R&D Facility

(RTTNews) - Hospira, Inc. (HSP) said FRiday that it has completed the acquisition of an active pharmaceutical ingredient manufacturing facility and an associated research and development facility from Indian pharmaceuticals company Orchid Chemicals & Pharmaceuticals Ltd. for about $218 million, after settling prior advances of about $30 million.

The deal was originally announced in August 2012

The acquisition enables Hospira, already a leader in certain critical antibiotic injectable products, to vertically integrate into the beta-lactam antibiotic APIs, and is also expected to improve Hospira's cost position in this therapeutic space.

The API manufacturing facility, located in Aurangabad, India, has capabilities for manufacturing sterile APIs and employs about 665 employees including chemists, engineers and technicians. Hospira's purchase also includes an associated Orchid R&D facility based in Chennai, India, that will be directed mainly to beta-lactam and other API development with about 110 scientific personnel.

Post deal, Orchid retains its cephalosporin API business and facilities, and also certain non-antibiotic, non-sterile businesses and facilities it owns. Orchid will continue to supply Hospira with cephalosporin APIs.