FDA Nod for Hospira Product - Analyst Blog
March 15 2012 - 1:11PM
Zacks
Hospira, Inc. (HSP) recently announced that its
Symbiq 3.13 infusion pump has been cleared by the US Food and Drug
Administration (FDA). The device, an improved version of the
advanced infusion system platform at Hospira, is one of the first
to be cleared via the new draft regulatory guidance for 510(k)
infusion pump submissions of the US regulatory body.
The device, which boasts of an updated software design and other
superior technological features, should improve efficiency thereby
reducing medical errors. Hospira intends to make its new offering
available to previously contracted customers in the second quarter
of 2012.
Management at Hospira stated that the FDA clearance of the
technologically advanced infusion pump will not impact the 2012
projection provided while releasing the fourth-quarter and full
year 2011 results last month.
Hospira, based in Lake Forest, Illinois, had stated that it
expects top-line growth in the range of -1% to 2% on a constant
currency basis. Foreign exchange is expected to have a negative
impact of 1% on the top line. The company expects adjusted earnings
in the range of $2.00–$2.30, as opposed to $3.04 per share earned
in 2011.
The decline is attributable to the ongoing quality control
issues at the company. The company said that it will increase
investment in research and development to expand its product
portfolio. This will also impact the bottom line.
Our Recommendation
We currently have a Neutral recommendation on Hospira. The stock
carries a Zacks #3 Rank (Hold rating) in the short-run.
HOSPIRA INC (HSP): Free Stock Analysis Report
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