QUOTE AND NEWS
StreetInsider.com  Oct 8  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Hospira+%28HSP%29+Recalls+1+Lot+of+Vancomycin+Hydrochloride+Due+to+Uncontrolled+Storage+in+Transit/9896784.html for the full story.
StreetInsider.com  Oct 7  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Omeros+Corp.+%28OMER%29%2C+Hospira+%28HSP%29+Enter+Supply+Agreement+for+Omidria/9891180.html for the full story.
FiercePharma  Oct 1  Comment 
Hospira's FDA woes have moved to Australia. The agency scolded the U.S.-based company in a warning letter based on an injectables plant inspection in late February and early March, according to a Wednesday securities filing.
Market Intelligence Center  Sep 29  Comment 
For a hedged play on Hospira Inc (HSP) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Nov. '14 $50.00 covered call for a net debit in the $48.81 area. That is also the break-even stock price for the covered call....
Market Intelligence Center  Sep 18  Comment 
After closing Wednesday at $53.44, Hospira Inc (HSP) presents an attractive opportunity to get a 3.01% return in just 121 days, which is an annualized return of 9.07% (for comparison purposes only). To enter this trade, sell one Jan. '15 $50.00...
Motley Fool  Sep 8  Comment 
Hospira has had a great run over the past 12 months. Is it time to buy or sell this high-flying stock?
FiercePharma  Sep 8  Comment 
Hospira's reprieve from generic Precedex competition was short-lived. The U.S. district court that temporarily stopped Precedex generics has now decided to let the copycats roll. And that could mean Hospira will soon be sharpening its job-cutting ax.
FiercePharma  Sep 4  Comment 
Many a U.S. drugmaker has pounced on an opportunity to pick up a foreign company, haul overseas and reap the tax rewards. But while rumors this summer said Illinois-based Hospira would be jumping on the tax-inversion bandwagon, its deal isn't...
Market Intelligence Center  Sep 4  Comment 
After Wednesday’s trading in Hospira Inc (HSP) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 2.56% return, or 5.54% annualized (for comparison...
Clusterstock  Sep 3  Comment 
By Anjuli Davies and Sophie Sassard LONDON (Reuters) - U.S. drugmaker Hospira’s talks to buy the medical nutrition unit of Danone and use the deal to move its tax domicile abroad have stalled, according to people familiar with the matter, as...




 

Hospira (NYSE: HSP) is a global specialty pharmaceutical and medication delivery company that is focused on products that improve the safety and efficacy of patient care in the acute care setting. Hospira is a global leader in manufacturing specialty injectable pharmaceuticals and medication delivery systems that deliver drugs and intravenous fluids. Hospira is also a leading provider of contract manufacturing services to pharmaceutical and biotechnology companies for formulation development and filling and finishing of injectable pharmaceuticals. Hospira's U.S. product line is based on five categories: Specialty Injectable Pharmaceuticals, Medication Delivery Systems, Injectable Pharmaceutical Contract Manufacturing, Sales to Abbott, and Other. Other includes sales to non-hospital customers and sales of critical care products. Specialty Injectable Pharmaceuticals and Medication Delivery Systems generate the majority of Hospira's base revenue. Hospitals, alternate site clinics, home healthcare providers, and long-term care facilities use Hospira's broad portfolio of products. Hospira is benefiting from healthcare legislation in the U.S. which allows pharmaceutical manufacturers to produce generic versions of biotech drugs. However, Hospira is struggling with a large backorder volume and shortages of chemicals from suppliers.

Business Growth

Hospira has benefited from strong U.S. sales of docetaxel and gemcitabine, two major oncolytic pharmaceuticals.[1] Hospira has also recently decreased its backorder volume and increased manufacturing efficiency from the Project Fuel optimization initiatives. However, a joint-venture arrangement related to the production of docetaxel and higher research and development expenses associated with new product development programs have weighed on the company's earnings.

Trends and Forces

Generic biotech drugs benefit from new U.S. healthcare legislation

The Affordable Care Act, signed into law in 2010, authorizes the Food and Drug Administration to approve "biosimilar" forms of brand-name biotech drugs. Biosimilars have been unavailable in the U.S. because they were not part of the 1984 landmark Hatch-Waxman law, which allowed for cheaper generic drugs from chemically derived products.[2]

Biotech drugs are some of the most expensive medications. The new health law requires extensive clinical trials before biosimilar drugs are approved. In Europe, patients enjoy savings of 20-30% on biosimilar drugs over the brand-name alternative.[2] Hospira sells Retacrit, a biogeneric version of Epogen, in Europe to patients with renal dysfunction who have anemia. Hospira has begun a clinical trial of its biosimilar version of Epogen in 20 U.S. hemodialysis centers. Hospira will benefit from the new biosimilar market opportunity in the U.S.

Backorders on drugs can harm Hospira's business

Some cancer drugs have been in short supply in recent months. Hospira is one of two major suppliers in Canada of a drug that is made abroad and is in short supply. The one that appears to have the most sensitivity is carboplatin, used mainly when solid tumours have been diagnosed.[3] Reasons for the shortage include shortages of the active pharmaceutical ingredient and operational issues in some plants. When Hospira is unable to fill its orders of certain cancer drugs, hospitals turn to other pharmaceutical companies.

Competition

The use of generic pharmaceuticals is subject to variations in the structure of health care systems and government policies regarding the use of generic products and pricing, which all lead to differing levels of customer acceptance. There are different policies and levels of generic penetration in each country, causing the competition for generic pharmaceuticals to differ widely.

References

  1. Hospira Investor Relations: "Maintains sales and adjusted earnings projections for 2011"
  2. 2.0 2.1 Los Angeles Times: "Generic biotech drugs part of healthcare overhaul law" May 7, 2011
  3. The Canadian Press: "Low supply of some cancer drugs is a concern for hospital pharmacies" May 14, 2011



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