UPDATE 3-Hospira boosts full-year profit outlook, shrs rise

* Sees 2009 EPS of $2.80-$2.85, vs prior view $2.70-$2.75

* Sees revenue up 5-7 pct on constant currency basis

* Shares rise as much as 6 pct, then pare gains (Adds CEO interview, byline, updates shares)

By Debra Sherman

CHICAGO, Sept 17 (Reuters) - Hospital-products and generic drug maker Hospira Inc (HSP.N) boosted its full-year profit and revenue forecasts on Thursday on stronger sales of its injectable generic medicines.

Shares rose as much 6 percent to their highest level since mid-2006 before paring gains as the company held a conference for analysts and investors.

Hospira forecast 2009 earnings per share of $2.80 to $2.85, up from its previous forecast of $2.70 to $2.75 per share.

Analysts on average had been looking for $2.77 a share, according to Reuters Estimates.

Hospira also forecast global revenue to rise 5 percent to 7 percent this year on a constant currency basis. That compares with a prior outlook of 4 percent to 6 percent growth.

The company said growth will be fueled by the increasing value of its generic injectable pipeline, deeper penetration of installed devices, more efficient manufacturing and geographic expansion.

In an interview, Chairman and Chief Executive Chris Begley said hospital spending for capital equipment remains tight, but hospitals have been willing to pay a premium for medical devices, such as so-called "smart" medication pumps equipped with computer software to prevent overdosing.

"If there's a financial justification, if we can show them (premium priced medical devices) cut down on lawsuits or lower insurance premiums, they're willing (to buy)," Begley said.

However, the capital spending for big-ticket durable equipment, from hospital beds to MRIs, has not thawed and probably will not for at least another year and a half, he said.

"I was just at a meeting of hospital CEOs ....and I wouldn't anticipate any change until the end of 2010," he added.

Separately, he said Hospira is in talks with the makers of "swine flu", or H1N1, vaccines. Hospira does not make vaccines, but it can take bulk vaccine and package it into syringes.

Baxter International (BAX.N), Novartis (NOVN.VX), and GlaxoSmithKline (GSK.L) are among the drugmakers working to develop H1N1 vaccines.

Begley said Hospira, which recently divested its critical care business, is still reviewing other businesses to divest. He said he is "constantly" looking for possible acquisitions.

Shares were up 2.4 percent at $43.17 in afternoon trading on the New York Stock Exchange, where they earlier climbed to $44.72. (Reporting by Debra Sherman in Chicago and Lewis Krauskopf in New York; Editing by Lisa Von Ahn, Dave Zimmerman)