QUOTE AND NEWS
Market Intelligence Center  Jul 15  Comment 
The patented options-trade picking algorithms used by MarketIntelligenceCenter.com found a trading opportunity with Hospira Inc (HSP) that should provide a 3.45% return in just 220 days. Sell one Feb. '15 call at the $45.00 level for each 100...
Market Intelligence Center  Jun 26  Comment 
Hospira Inc (HSP) traded between $51.78 and $52.30 before closing at $51.81 Wednesday and presents some attractive trading opportunities today according to MarketIntelligenceCenter.com's patented algorithms. The computer program that picks trades...
Market Intelligence Center  Jun 5  Comment 
The option-trade picking algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center have selected a covered-call trade on Hospira Inc (HSP) that includes 11.61% downside protection. Sell one contract of the Jan. '15 $45.00 call...
The Hindu Business Line  May 22  Comment 
To go ahead with Hospira India deal
Market Intelligence Center  May 22  Comment 
MarketIntelligenceCenter.com's patented algorithms have selected a trade on Hospira Inc (HSP) that returns 11.73% in 184 days for an annualized return rate of 23%. This diagonal spread pairs a short position in the Nov. '14 $45.00 call, with a...
Market Intelligence Center  May 16  Comment 
Hospira Inc (HSP) presents a trading opportunity that offers a 3% return in just 92 days. A covered call on Hospira at the $45.00 level expiring on Aug. '14 offers an assigned return rate of 3% or 11.90% annualized. This trade offers 7.61%...
FiercePharma  May 15  Comment 
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.
Market Intelligence Center  May 14  Comment 
The option-trade picking algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center have selected a covered-call trade on Hospira Inc (HSP) that includes 8.97% downside protection. Sell one contract of the Aug. '14 $45.00 call...
Benzinga  May 1  Comment 
In a report published Thursday, Morgan Stanley analyst David R. Lewis reiterated an Equal-Weight rating on Hospira (NYSE: HSP). In the report, Morgan Stanley noted, β€œThe bull case requires a long horizon. Guidance implies $4.25-4.75 EPS in...
SeekingAlpha  Apr 30  Comment 
Hospira (HSP) Q1 2014 Earnings Call April 30, 2014 9:00 am ET Executives Karen King F. Michael Ball - Chief Executive Officer, Director and Member of Science, Technology & Quality Committee Thomas E. Werner - Chief Financial...




 

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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