US pharmaceutical giant Pfizer will expand its line of drugs and therapies with the takeover of $17 billion Hospira. The deal has been approved by the boards of both companies, and will importantly add Hospira's portfolio of sterile injectable treatments and biosimilar drugs to Pfizer's broad pharmaceutical offerings.
Pfizer will pay $90 a share in cash for Hospira, which is nearly 40 percent premium.
The companies said, "The market for sterile injectables, injectable drugs which can treat a range of maladies from pain to cancer, will be about $70 billion in 2020. The world market for biosimilars, officially approved adaptations of off-patent drugs made by others, will hit $20 billion in 5-years."
Pfizer chairman and chief executive Ian Read said, "Hospira's business aligns well with our new commercial structure and is an excellent strategic fit for our Global Established Pharmaceutical business, which will benefit from a significantly enhanced product portfolio in growing markets."