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ICU Medical acquires Hospira's critical care line
Fountain Valley’s Hospira focuses future growth and innovation on streamlined product line.
By Susan BelknappPublished: July 13, 2009 03:35 PM
San Clemente-based ICU Medical Inc., a leading low-cost manufacturer of safe medical connectors, custom medical products and critical care devices, announced Thursday it has will acquire the commercial rights and physical assets of Hospira Inc.'s critical care product line for approximately $35 million in cash. The purchase is expected to close during the third quarter of 2009.
"This acquisition creates a long-term growth opportunity for ICU Medical and positions us to improve gross margins and earnings by controlling all aspects of the critical care product line," says Dr. George Lopez, chairman and president, ICU Medical. "We have been manufacturing the majority of Hospira's critical care offerings for over four years and Hospira continues to be a very important partner for our company.
“Hospira's recent internal initiatives have created a good opportunity for us to acquire this business,” continues Lopez. “This transaction will enable us to completely control worldwide commercial responsibility for the critical care products including sales, marketing, customer contracting and distribution."
In 2005, Hospira and ICU Medical entered into a strategic manufacturing, commercialization and development agreement for the product line. As part of this previous agreement, ICU Medical also purchased Hospira's Salt Lake City facility where the majority of its critical care products are produced. Upon completion of the acquisition, ICU Medical will gain complete control of the product line, including commercial rights.
"This agreement advances Hospira's Project Fuel optimization efforts to simplify our product line," says Christopher B. Begley, chairman and CEO, Hospira. "It will enable an even greater focus on Hospira's core strategic areas of specialty injectable pharmaceuticals and medication management systems, driving innovation and growth in these key businesses.
“The strong partnership between Hospira and ICU Medical, combined with ICU Medical's strength in the critical care market, will also make this transition a smooth one for customers, and will facilitate continued availability and future investment in these important critical care products," continues Begley.
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San Clemente-based ICU Medical Inc., a leading low-cost manufacturer of safe medical connectors, custom medical products and critical care devices, announced Thursday it has will acquire the commercial rights and physical assets of Hospira Inc.'s critical care product line for approximately $35 million in cash. The purchase is expected to close during the third quarter of 2009. "This acquisition creates a long-term growth opportunity for ICU Medical and positions us to improve gross margins and earnings by controlling all aspects of the critical care product line," says Dr. George Lopez, chairman and president, ICU Medical. "We have been manufacturing the majority of Hospira's critical care offerings for over four years and Hospira continues to be a very important partner for our company. “Hospira's recent internal initiatives have created a good opportunity for us to acquire this business,” continues Lopez. “This transaction will enable us to completely control worldwide commercial responsibility for the critical care products including sales, marketing, customer contracting and distribution." In 2005, Hospira and ICU Medical entered into a strategic manufacturing, commercialization and development agreement for the product line. As part of this previous agreement, ICU Medical also purchased Hospira's Salt Lake City facility where the majority of its critical care products are produced. Upon completion of the acquisition, ICU Medical will gain complete control of the product line, including commercial rights. "This agreement advances Hospira's Project Fuel optimization efforts to simplify our product line," says Christopher B. Begley, chairman and CEO, Hospira. "It will enable an even greater focus on Hospira's core strategic areas of specialty injectable pharmaceuticals and medication management systems, driving innovation and growth in these key businesses. “The strong partnership between Hospira and ICU Medical, combined with ICU Medical's strength in the critical care market, will also make this transition a smooth one for customers, and will facilitate continued availability and future investment in these important critical care products," continues Begley. NEXT PAGE >> Related headlines Boeing Huntington Beach granted $43 million contract from U.S. Navy Irvine's Quantum inks $10 million deal with Fisker Automotive ‘OC METRO Minute,’ July 9: Pipeline to a Cure event July 18 ‘OC METRO Minute,’ July 2: Anaheim Memorial sold for $60 million |
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