US and Brazil clear path for Pfizer’s Hospira buyout
Pfizer’s buyout of Hospira, which is set to boost Pfizer’s biosimilars portfolio but has been the subject of anti-competition concerns, will be completed next month after gaining final approval.
The pharmaceutical company announced on Monday, August 24, that the US Federal Trade Commission has approved the deal, as has Brazil’s Superintendency-General of the Council for Economic Defense.
As part of the deal Pfizer will sell four of its drugs, Acetylcysteine, used to treat those suffering from cystic fibrosis; Clindamycin, which is used to treat malaria; Voriconazole, an anti-fungal medication; and chemotherapy drug Melphalan.
Ian Read, chairman and chief executive of Pfizer, said: “We are pleased to have received these final regulatory approvals for our pending acquisition of Hospira.
“We now look forward to combining our two companies and expect the transaction to close in early September.”
Pfizer revealed in February this year that it had agreed to buy Hospira. The company will purchase shares in Hospira for $90 each, making the deal worth $17 billion in total.
But the proposal attracted concern from some anti-competition authorities that feared the combined company would not face sufficient competitive pressure from the remaining players in the market.
The $17 billion buyout was approved in the EU, Canada and Australia earlier this month.
As part of the deal, Pfizer will boost its global pharma unit with Hospira’s biosimilar portfolio.
Pfizer said it believes the deal will “build a broad portfolio of biosimilars in its therapeutic areas of strength”.
