QUOTE AND NEWS
Market Intelligence Center  Apr 13  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Hospira Inc (HSP) could yield about 2.10% (3.08% annualized, for comparison purposes only) in 249 days. Pair a long position in the stock with the Dec. '15 $85.00...
Benzinga  Apr 11  Comment 
Uncertainty over patents on The Medicines Company (NASDAQ: MDCO)'s lead blood-clot drug Angiomax will hurt results going forward, an analyst said Friday. Hospira, Inc. (NYSE: HSP) is set to launch a generic version of Angiomax in June under a...
MarketWatch  Apr 7  Comment 
Hospira Inc. shares were down slightly Tuesday after the drug and device maker reportedly got another warning letter from the U.S. Food and Drug Administration over manufacturing deficiencies at one of its plants in Liscate, Italy. The Wall...
FiercePharma  Apr 7  Comment 
When Pfizer announced its $15 billion deal to buy sterile injectable specialist Hospira, execs said they had studied FDA concerns over Hospira manufacturing before pulling the trigger. But Hospira just keeps giving Pfizer new lessons. Today, the...
Benzinga  Mar 23  Comment 
Pfenex Inc. (NYSE MKT: PFNX), a clinical-stage biotechnology company engaged in the development of biosimilar therapeutics including high value and difficult to manufacture proteins, announced today that the Federal Trade Commission has granted...
Market Intelligence Center  Mar 19  Comment 
After closing Wednesday at $87.72, Hospira Inc (HSP) presents an attractive opportunity to get a 2.02% return in just 155 days, which is an annualized return of 4.75% (for comparison purposes only). To enter this trade, sell one Aug. '15 $85.00...
Benzinga  Mar 9  Comment 
The Medicines Company (NASDAQ: MDCO) tumbled nearly 10 percent Monday following a court hearing on Friday involving litigation with Hospira, Inc. (NYSE: HSP) over MDCO's Angiomax drug. Opening arguments were expected on Tuesday according to...
Benzinga  Mar 6  Comment 
Hospira, Inc. (NYSE: HSP), applauds Sandoz and the U.S. Food and Drug Administration (FDA) on today's FDA approval of the first biosimilar in the United States. This is a watershed moment for improving patient access to safe, effective and more...
Forbes  Feb 26  Comment 
The most recent short interest data has been released by the NASDAQ for the 02/13/2015 settlement date, which shows a 3,335,142 share decrease in total short interest for Hospira Inc (NYSE: HSP), to 1,903,684, a decrease of 63.66% since...
FierceBiotech  Feb 26  Comment 
The FDA wants some more time to review Hospira and partner Celltrion's copy of Johnson & Johnson's blockbuster autoimmune drug Remicade, possibly delaying the drug's march onto the U.S. market.




 

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



Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki