Hospira has announced the acquisition of the manufacturing plant for medicinal products (ie for penicillins) and research and development unit (R & D) of Indian pharmaceutical company Orchid Chemicals & Pharmaceuticals Ltd., for $200 million. The production plant is an excellent strategic unity: in 2009 it was awarded with the International Society of Pharmaceutical Engineering’s (ISPE) Facility of the Year Award for Regional Excellence.
It is understood that the deal, subject to approval by the authorities, will be completed by the end of 2012. Further, from a corporate finance point of vie, it assumes that this vertical integration, when the transaction costs are deducted, will have a slightly positive impact on net income.
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