Pfizer said it right up front: With the acquisition of Hospira they expect to save "$800 million" right off the bat, and they can do that by basically laying off everyone at Hospira the first year!
Just ask former employees of past acquisitions, from Pharmacia, Warner Lambert, Wyeth, King...99% of Hospira personnel will be given severance packages, and I am talking basically everyone in Corporate Management down to the Sales Force. So get your resume ready.
Pfizer didn't certainly buy Hospira for their lame management or their lackluster sales force. They bought Hospira only for their extensive biosimilar pipeline. Hospira’s biosimilars are of key importance, and Pfizer will now be better positioned to capture a bigger share of the growing billion dollar biologics market to offset the loss of the billion dollar Lipitor and Viagra business as it gets eaten up by generic competition.
The Hospira sterile generic injectable business will be used only to prop up the GEP business, which they have been planning to spin off anyway, but lacked the breadth of product to make it worthwhile to someone looking to buy older drugs off patent.
It's pretty much written in stone that Pfizer’s GEP business WILL be spun in the next two years!
Pfizer still has $100 billion dollars to make additional acquisitions that will pump up their Core business, dwarfing any value that Hospira may bring to them in the future.
So read the writing on the wall: This acquisition lays the groundwork for a guaranteed Separation of GEP, and anyone that goes along for the ride.
So in summary, Hospira generic injectables will add significant value to Pfizer’s GEP segment, BUT like I said, It Will be SOLD or SPUN OFF as a separate entity.
Pfizer’s strategic objective is to focus on core growth platforms in the branded drug market, and expanding their biosimilar pipeline, while divesting its ancillary operations, similar to when it carved-out its Animal Health business (Zoetis) and brought it public.
The bottom line is that Hospira will quickly be joining that elite group of hasbeens in the "Lost Civilizations" section of CafePharma!
Just ask former employees of past acquisitions, from Pharmacia, Warner Lambert, Wyeth, King...99% of Hospira personnel will be given severance packages, and I am talking basically everyone in Corporate Management down to the Sales Force. So get your resume ready.
Pfizer didn't certainly buy Hospira for their lame management or their lackluster sales force. They bought Hospira only for their extensive biosimilar pipeline. Hospira’s biosimilars are of key importance, and Pfizer will now be better positioned to capture a bigger share of the growing billion dollar biologics market to offset the loss of the billion dollar Lipitor and Viagra business as it gets eaten up by generic competition.
The Hospira sterile generic injectable business will be used only to prop up the GEP business, which they have been planning to spin off anyway, but lacked the breadth of product to make it worthwhile to someone looking to buy older drugs off patent.
It's pretty much written in stone that Pfizer’s GEP business WILL be spun in the next two years!
Pfizer still has $100 billion dollars to make additional acquisitions that will pump up their Core business, dwarfing any value that Hospira may bring to them in the future.
So read the writing on the wall: This acquisition lays the groundwork for a guaranteed Separation of GEP, and anyone that goes along for the ride.
So in summary, Hospira generic injectables will add significant value to Pfizer’s GEP segment, BUT like I said, It Will be SOLD or SPUN OFF as a separate entity.
Pfizer’s strategic objective is to focus on core growth platforms in the branded drug market, and expanding their biosimilar pipeline, while divesting its ancillary operations, similar to when it carved-out its Animal Health business (Zoetis) and brought it public.
The bottom line is that Hospira will quickly be joining that elite group of hasbeens in the "Lost Civilizations" section of CafePharma!