Jeremy Steinberg
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Pfizer to buy Hospira for $16 billion

Bloomberg

A Pfizer Inc. logo sits on a sign outside the company

Pfizer Inc. agreed to buy Hospira Inc., a maker of injectable drugs and infusion technologies, for about $16 billion.

Hospira HSP, -0.05% shareholders will receive $90 a share in cash, a 39% premium to Wednesday’s close.

Pfizer PFE, -0.12% noted both sterile injectables and biosimilars are large and growing categories. The global marketplace value for generic sterile injectables is estimated to be $70 billion in 2020, while the marketplace for biosimilars is estimated to be about $20 billion by that time..

The companies tagged the enterprise value of the deal, which likely includes the assumption of debt, at about $17 billion. The deal is expected to immediately add to earnings upon closing.

Pfizer last year made a $120 billion bid to buy AstraZeneca but was rebuffed. Pfizer Chief Executive Ian Read has said that the company remained open to doing a big deal. The drug maker, like its rivals, is dealing with billions lost in sales from drugs losing patent protection.

An expanded version of this report appears at WSJ.com.