QUOTE AND NEWS
Motley Fool  Aug 22  Comment 
Let’s take a look at three reasons Hospira’s stock could fall.
FiercePharma  Aug 21  Comment 
Lawsuits against the FDA don't normally get much traction. Luckily for Hospira ($HSP), it has one that did. A federal judge has suspended the agency's decision allowing drugmakers to market certain generic copies of Hospira's top product--but it...
FiercePharma  Aug 20  Comment 
New generic competition in the U.S. always makes a sales organization uneasy because layoffs usually follow. But Hospira's branded sales team faces a double whammy.
Wall Street Journal  Aug 20  Comment 
Hospira was granted a temporary restraining order against the FDA over the agency's approval of generic versions of the company's top-selling drug.
Motley Fool  Aug 19  Comment 
Let’s take a look at three reasons Hospira’s stock could soar to new highs.
Forbes  Aug 19  Comment 
In early trading on Tuesday, shares of TJX Companies (TJX) topped the list of the day's best performing components of the S&P 500 index, trading up 7.0%.  Year to date, TJX Companies has lost about 9.5% of its value.
Market Intelligence Center  Aug 18  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Hospira Inc (HSP) could yield about 2.84% (6.82% annualized, for comparison purposes only) in 152 days. Pair a long position in the stock with the Jan. '15 $50.00...
Reuters  Aug 14  Comment 
A senior U.S. senator said on Thursday he has written to the chief executive of Hospira Inc and urged the drug and medical device maker not to move its tax domicile...
New York Times  Jul 30  Comment 
Hospira’s potential $5 billion deal for a Danone unit highlights a variation on inversions: "spinversions." The odd combination, says Robert Cyran of Reuters Breakingviews, also reflects the perverse incentives distorting corporate decisions.
SeekingAlpha  Jul 30  Comment 
Hospira (NYSE:HSP) Q2 2014 Earnings Call July 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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