Pfizer Edges Outlook Higher to Factor in Hospira
September 30 2015 - 10:10AM
Dow Jones News
Pfizer Inc. on Wednesday boosted its full-year revenue and
adjusted-earnings outlooks to reflect its recently completed
acquisition of Hospira Inc.
The New York-based drug maker slightly raised its sales forecast
for the year to between $46.5 billion and $47.5 billion from a
previous range of $45 billion to $46 billion, and said adjusted
earnings per share would also likely be higher at $2.04 to $2.10,
as opposed to the previous range of $2.01 to $2.07.
The company also lowered its bottom-line guidance for earnings
per share to a range of $1.29 to $1.38, down from its previously
given range of $1.38 to $1.47.
Shares of Pfizer rose 0.8% to $31.28 in recent premarket
trading.
Pfizer acquired smaller rival Hospira in a $16 billion deal that
closed earlier this month. The acquisition is expected to transform
the pharmaceutical company into a leading player in the emerging
market for lower-priced knockoffs of costly biotech drugs. Under
the terms of the deal, Hospira shareholders received $90 a share in
cash.
Regulators had worried that the two companies, both based in the
U.S., would together have a high market share for certain sterile
injectable drugs, which are administered with a hollow hypodermic
needle. To ease those fears, Pfizer agreed to divest itself of four
U.S. sterile-injectable assets.
European regulators were also concerned that the companies might
delay or discontinue production of a copycat version of Infliximab,
a popular drug used to treat autoimmune diseases such as rheumatoid
arthritis and Crohn's disease.
To address those concerns, Pfizer agreed to fully divest itself
of the development, manufacturing and marketing rights of its
Infliximab-biosimilar drug currently in development, though it will
retain marketing rights outside Europe.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 30, 2015 09:55 ET (13:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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