Hospira

Hospira

Company type	Subsidiary
Traded as	Template:NYSE was
Founded	May 3, 2004 (spun off from Abbott Laboratories)
Headquarters	Lake Forest, Illinois, United States
Key people	F. Michael (Mike) Ball (CEO); John C. Staley, Chairman of the Board of Directors
Products	Generic acute-care and oncology injectables, integrated infusion therapy, medication management systems
Revenue	$4.5 billion (2014)
Number of employees	Approximately 19,000
Parent	Pfizer
Website	www.pfizerhospitalus.com

Hospira was a global pharmaceutical and medical technology firm based in Lake Forest, Illinois. The company employed nearly 19,000 staff members. Prior to its acquisition by Pfizer, Hospira stood as the leading manufacturer worldwide of generic injectable medications, offering generic acute-care and oncology injectables along with integrated infusion therapy and medication management solutions. Its product portfolio catered to hospitals as well as alternate care settings including clinics, home health services, and long-term care providers. Originating as Abbott Laboratories' hospital products segment, Hospira was acquired by Pfizer on September 3, 2015; subsequently, Pfizer divested Hospira’s medical device division to ICU Medical.

In 2014, Hospira generated global revenues close to $4.5 billion. Following the acquisition, its financial outcomes have been incorporated within Pfizer’s consolidated results.

History

Abbott announced plans in January 2004 to separate its hospital products division into an independent entity.

The name "Hospira" was selected through an employee ballot and reflects a fusion of "hospital," "spirit," "inspire," and the Latin term spero, which means "hope." On May 3, 2004, Hospira commenced operations independently with a workforce of 14,000 employees spread across 14 manufacturing facilities and projected annual sales of $2.5 billion.

In 2007, Hospira expanded its reach by acquiring Mayne Pharma Ltd., an Australian company specializing in injectable pharmaceuticals, for $2.1 billion.

The company's growth continued in 2009 through several acquisitions: it purchased Pliva-Croatia's biotechnology division and Orchid Chemicals & Pharmaceuticals Ltd.'s generic injectable unit for an aggregate of around $400 million. Additionally, Hospira acquired Theradoc, a firm focused on clinical informatics and hospital surveillance technology.

Hospira further broadened its portfolio in 2010 by acquiring Javelin Pharmaceuticals for approximately $145 million; Javelin was known for producing Dyloject, a drug used for managing post-operative pain.

Leadership transitions included the appointment of Mike Ball—previously president at Allergan—as CEO in March 2011. John Staley assumed the role of non-executive chairman in January 2012 after Christopher Begley retired.

In February 2015, Pfizer announced its intention to purchase Hospira for about $17 billion; the transaction was finalized in September of that year. Between 2016 and 2017, Pfizer sold Hospira’s medical devices business to ICU Medical for roughly $900 million.

From 2020 through 2022, Pfizer utilized the Hospira brand name for its subsidiary responsible for supplying Sodium chloride Injection USP diluent used with the Pfizer–BioNTech COVID-19 vaccine.

Sodium thiopental production

Sodium thiopental, an anesthetic agent first developed by Abbott Laboratories in the 1930s, was later produced by Hospira following its separation from Abbott, marketed under the name Pentothal. Although recognized by the WHO as an essential medication, it is also utilized in the execution protocols of several U.S. states. While Hospira provided this drug for use in capital punishment, the company publicly opposed its application for this purpose.

In January 2011, Hospira declared it would discontinue the manufacture of sodium thiopental. Production had been transferred from North Carolina to a facility in Liscate, Italy. Due to Italy's prohibition against capital punishment, the government demanded assurances that the drug would not be employed for executions. Unable to provide such guarantees and concerned about potential legal liabilities for its workforce, Hospira ceased production. This action affected the supply of sodium thiopental for lethal injections in the United States, resulting in delays of scheduled executions.

Legislation and litigation

Hospira introduced a generic form of oxaliplatin, a colon cancer treatment originally created by Sanofi-Aventis, in August 2009. In April 2010, Hospira reached a settlement with Sanofi-Aventis agreeing to suspend U.S. sales of oxaliplatin by June 30, 2010, with authorization to resume marketing on August 9, 2012.

In 2010, U.S. law was enacted permitting the commercialization of biosimilar drugs and providing brand-name biologic manufacturers with 12 years of data exclusivity—a measure that faced opposition from certain consumer advocacy groups concerned about medication accessibility.

Competitors

Within the specialty injectable pharmaceuticals sector, Hospira's competitors include Fresenius AG, Baxter International Inc., Bedford Laboratories, Mylan, Sandoz (a Novartis division), and Teva Pharmaceuticals. Its portfolio of medication management systems competes with products from Baxter, B. Braun Melsungen AG, CareFusion, and Fresenius Medical Care AG.

Infusion pump system firmware vulnerability disclosures

From 2014 through 2015, cybersecurity experts discovered critical vulnerabilities in the firmware of Hospira’s PCA infusion pumps (identified as CVE-2015-3459). This represented one of the initial FDA safety alerts addressing cybersecurity threats in medical devices. Multiple remote exploitation methods were identified, prompting the FDA in July 2015 to advise healthcare facilities to discontinue use of these pumps. The incident heightened awareness surrounding cybersecurity challenges associated with network-connected medical equipment.