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Hospira Moves The Needle For Pfizer Spin-Out

So much for Ian Read's protestations that Pfizer (PFE) did not "need" to do an acquisition. Clearly what investors should have listened to last week was his hint that, if anything, his group was biased towards doing transactions with potential to create near-term value.

This is precisely what today's $17bn takeover of the injectables business Hospira (HSP) will achieve, especially when you factor in $800m of planned annual cost cuts. The move also backs the case for Pfizer's plan to split, making a spin-out of its established products division much more logical with Hospira than without.

True, the deal is not spectacularly exciting, but then Pfizer is still licking its wounds after the failure to buy AstraZeneca (AZN). At least Astra bulls will now realise that the chances of Pfizer coming back to the negotiating table to bid for the UK group have now vanished.

Hospira is the… Read More …