Pharma BD Deal Intelligence

Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (API and R&D facilities)

2012 · Asset Purchase · $200M · Complete

WRONG BY 61 POINTS

Plants bought to secure API supply were shut down within the decade amid FDA data-integrity findings and "non-viable" demand — a failed vertical-integration bet.

Full analysis, sources & comparables →

The coverage arc

Aug 29, 2012 Hospira Inc. Form 8-K Bullish

Hospira's 8-K disclosed the agreement to acquire Orchid's API manufacturing and R&D facilities for approximately $200 million, framing it as reducing costs and…

Sep 14, 2012 GaBi Online Bullish

GaBi noted the Aurangabad plant and Chennai R&D center together represented a top-tier API operation; the deal extended Hospira's 2010 Orchid injectable-FDF…

Jul 09, 2014 DCAT Value Chain Insights Bullish

DCAT framed the closing as completing Hospira's vertical integration into beta-lactam APIs (penems and penicillins), improving cost positioning and supply…

Source summaries from our enrichment pipeline; follow links for originals.

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Hospira acquired Orchid's beta-lactam API manufacturing facility (Aurangabad, ~665 employees) and Chennai R&D site (~110 scientists) for ~$200M. Vertical integration into beta-lactam injectable antibiotics. Orchid retained cephalosporin API business and continued supply.

Did it work? Outcome assessment

Plants bought to secure API supply were shut down within the decade amid FDA data-integrity findings and "non-viable" demand — a failed vertical-integration bet.

Strategic verdict
Failed to Achieve
Financial impact
Dilutive
Pipeline outcome
Assets Terminated

Key facts

Related deals — scored

DealYearValueOutcome
Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (API and R&D facilities) (this deal)2012$200M22
Hospira Inc. / Abbott Hospital Products Division200454
Hospira Inc. / Javelin Pharmaceuticals, Inc.2010$145M25
Hospira Inc. / Orchid Chemicals & Pharmaceuticals (Generic Injectables Business)2010$400M23
Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (Generic Injectables business)2009$400M22
Pfizer Inc. / BioNTech SE2020$748M100
Gilead Sciences Inc. / Pharmasset Inc.2011$11.2B98

Compare all 7 side-by-side →

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