Pfizer Inc's $15 billion deal to purchase Hospira Inc will allow the largest U.S. drugmaker to benefit from specialty generic medicines that are commanding far higher prices than traditional off-patent pills, industry investors and analysts said. High demand for many of its injectable sterile drugs, including outright shortages in some cases, has allowed Hospira to increase prices in recent years.Pfizer said on Thursday it will be adding the business to its unit of "global established products" - now primarily a collection of conventional pills that have gone off-patent and steadily lost value due to competition from cheap generics.The combination will make the established products unit a more attractive play for investors should Pfizer eventually spin it off or sell it, a decision expected in 2017."A lot of established products are diminishing assets, whereas the generics business is growing nicely for specialty injectables. The portfolio tends to be more durable," said Kevin Kendra, an analyst with Gabelli & Co, which holds Hospira shares.
Hospira, Inc. (Hospira) is a provider of injectable drugs and infusion technologies. Shares of HSP traded higher by 35.25% or $22.84/share to $87.64. In the past year, the shares have traded as low as $40.41 and as high as $66.56. On average, 1017200 shares of HSP exchange hands on a given day and today's volume is recorded at 40963472.
Pfizer Inc. (Pfizer) is a research-based, global biopharmaceutical company. Shares of PFE traded higher by 2.87% or $0.92/share to $32.99. In the past year, the shares have traded as low as $27.51 and as high as $33.50. On average, 25562300 shares of PFE exchange hands on a given day and today's volume is recorded at 59443024.
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