Hospira to buy manufacturing facility in India
(Reuters) - Injectable generic drugs maker Hospira Inc (HSP.N) said it plans to buy a factory and a research center from India-based Orchid Chemicals & Pharmaceuticals Ltd (ORCD.NS) for $200 million.
The factory, located in Aurangabad in India's western state of Maharashtra manufactures active pharmaceutical ingredients. It was constructed in 2000 and has 640 employees.
The R&D facility in the southern city of Chennai has about 160 scientific personnel.
Lake Forest, Illinois-based Hospira said it expects the acquisitions to reduce costs, help supply key antibiotic products and pave the way for development of active pharmaceutical ingredients.
Hospira estimates the deal to break even or slightly add to earnings per share in the first year after it closes — expectedly in the fourth quarter.
Shares of Hospira opened up slightly at $33.45 on the New York Stock Exchange on Wednesday.
(Reporting By Pallavi Ail in Bangalore; Editing by Joyjeet Das)