(By Balachander) Hospira Inc. (NYSE:HSP), a provider of injectable drugs, has agreed to acquire U.S. Food and Drug Administration (FDA)-approved facility from India-based Orchid Chemicals & Pharmaceuticals Ltd. for roughly $200 million.
The Lake Forest, Illinois-based company expects the purchase so slightly add to its earnings in the first year following the close of the deal.
Hospira expects the acquisition of active pharmaceutical ingredient (API) manufacturing facility in Aurangabad and research and development (R&D) facility in Chennai to enhance cost-competitiveness and ensure continuity of supply of key antibiotic products.
The proposed deal follows Hospira's acquisition of Orchid's generic injectable finished-dosage form pharmaceuticals business in 2010.
The deal is expected to close in the fourth quarter.
The stock shed 0.54 percent to trade at $33.21 on Wednesday.