The Street Is Much Too Optimistic About Hospira
Stephen Simpson, CFA
Stephen Simpson, CFA
Aug. 27, 2015, 5:39 PM
- Activision Blizzard (NASDAQ:ATVI) will replace Pall Corp. (NYSE:PLL), and United Continental (NYSE:UAL) will replace Hospira (NYSE:HSP) in the S&P 500 after the close of trading on Aug. 28 and Sept. 2, respectively.
- S&P 500 member Danaher is acquiring Pall, and Hospira is being acquired by Pfizer.
- ATVI +6.3%, UAL +6.8% AH.
Aug. 27, 2015, 7:38 AM
- Hospira (NYSE:HSP) has received clearance from the FTC regarding its pending merger with Perkins Holding Company, a wholly-owned subsidiary of Pfizer (NYSE:PFE).
- All required regulatory approvals have now been secured, though the merger remains conditioned upon the expiration of a post-clearance waiting period in one foreign jurisdiction.
- Hospira expects the merger to close on or about September 3, 2015.
- SEC Form 8-K
Aug. 24, 2015, 8:37 AM
- Pfizer (NYSE:PFE) says the FTC has approved its acquisition of Hospira (NYSE:HSP), pending the sale of four U.S. sterile injectable assets: Acetylcysteine, Clindamycin, Voriconazole and Melphalan.
- The deal, announced in February and now on track to close early next month, will transform PFE into a leading player in the emerging market for lower-priced versions of costly biotech drugs.
Aug. 4, 2015, 12:01 PM
- The European Commission said today that Pfizer (PFE -0.6%) offered undisclosed concessions to allay concerns over competition, apparently some days ago, in a bid to win approval for its proposed takeover of Hospira (HSP +0.1%). The EC extended its decision date from July 20 to today in order to review the concessions. No other information is provided.
- Update: The EC approves the merger contingent on Pfizer divesting certain assets. The transaction is expected to close in H2.
Jul. 29, 2015, 8:23 AM
- Hospira (HSP -0.1%) Q2 results: Revenues: $1,183.6M (+4.2%); COGS: $664.2M (-9.7%); R&D Expense: $89.8M (+18.6%); SG&A: $211.3M (unch); Operating Income: $218.6M (+119.7%); Net Income: $145.1M (+104.7%); EPS: $0.82 (+95.2%); Quick Assets: $819.9M (2.2%).
- No guidance given.
Jul. 29, 2015, 7:35 AM
- Hospira (NYSE:HSP): Q2 EPS of $0.85 beats by $0.05.
- Revenue of $1.18B (+3.5% Y/Y) in-line.
Jul. 28, 2015, 5:30 PM
- ACCO, ADT, AMED, AMT, ANTM, APO, AVY, BAH, BDC, BEN, BGCP, BOKF, CARB, CBG, CDK, CFR, CHH, CLF, CRI, DATA, DIN, DORM, DXYN, ESIO, ETN, EVER, EXC, FDML, FLY, GCI, GD, GEL, GIB, GRA, GRMN, GT, GTI, HCBK, HES, HLT, HSIC, HSP, HTA, HUM, HUN, IP, IRT, JAH, JLL, LFUS, LVLT, MA, MDCO, MO, MTH, MTOR, MVIS, NOC, PAG, PCG, PX, Q, RES, ROK, ROL, SAIA, SLAB, SNCR, SO, SONS, SPIL, SPR, SPW, SSE, STNG, STRA, STRZA, TGI, TRI, UBSI, UMC, VNTV, WEC, WEX, WILN, WOOF
May 21, 2015, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Apr. 28, 2015, 8:29 AM
- Hospira (HSP -0.4%) Q1 results: Revenues: $1,174.9M (+11.8%); COGS: $651.4M (-4.4%); R&D Expense: $135.4M (+62.7%); SG&A: $223.6M (+20.2%); Operating Income: $133.4M (+33.9%); Net Income: $75.6M (+11.3%); EPS: $0.43 (+7.5%); Quick Assets: $643.7M (-19.8%); CF Ops: ($100.3M) (-648.1%).
- Revenue by region: America: $976.9M (+16.0%); EMEA: $118.5M (-10.7%); APAC: $79.5M (+4.2%).
- Revenue by business: Specialty Injectable Pharmaceuticals: $808.5M (+12.9%); Medication Management: $203.8M (-1.2%); Other Pharma: $162.6M (+26.7%).
- No guidance given.
Apr. 28, 2015, 7:35 AM
- Hospira (NYSE:HSP): Q1 EPS of $0.97 beats by $0.44.
- Revenue of $1.17B (+11.4% Y/Y) beats by $90M.
Apr. 27, 2015, 5:30 PM
- AET, AGCO, AIXG, AKS, ALLY, AMG, AUDC, AUO, AXE, BMY, BP, BSX, CARB, CAS, CBR, CIT, CMI, CNC, CNX, COH, CPLA, CRY, DFRG, DORM, ECL, ENTG, ETR, F, FBC, FDP, FLWS, FMER, GAS, GLW, GPI, HMC, HSP, ICLR, IDXX, IIVI, IPGP, IPI, JBLU, JEC, LRN, LXK, MAS, MDXG, MHFI, MRGE, MRK, NCI, NEO, NOV, OFC, OSK, PAG, PFE, PH, PHG, POR, SALT, SC, SIR, SIRI, ST, SVU, TMUS, TXT, UBSI, UPS, UTHR, VDSI, VLO, WAT, WDR, WHR, WWW, WYN, XRS, YNDX
Apr. 7, 2015, 11:29 AM
- Hospira (HSP -0.2%) receives a Warning Letter from the FDA after the agency reviewed the follow-up actions cited in its inspection of its Liscate, Italy manufacturing facility more than a year ago. The inspection occurred in May 2014 and the company submitted its response the next month.
- FDA Director of Manufacturing Quality Thomas Cosgrove, J.D., cites a number of unresolved quality control issues and states that FDA representatives found similar problems in its December 2013 inspection of the company's Sriperumburdur, India plant.
- The receipt of a Warning Letter requires prompt action. The company must respond to the letter within 15 days with its plan to address the deficiencies. If they remain unresolved, the FDA could withhold approval of new filings.
Mar. 6, 2015, 9:12 AM
- The FDA approves Sandoz's (NYSE:NVS) Zarxio, a biosimilar to Amgen's (NASDAQ:AMGN) Neupogen (filgrastim), for the same indications as Neupogen.
- Zarxio is approved for the treatment of patients with cancer receiving myelosuppressive chemotherapy, patients with acute myeloid leukemia receiving induction or consolidation chemotherapy, patients with cancer undergoing bone marrow transplantation, patients undergoing autologous peripheral blood progenitor cell collection and therapy and patients with severe chronic neutropenia.
- The placeholder nonproprietary name for Zarxio is "filgrastim-sndz."
- Previously: FDA Ad Comm gives thumbs up to Sandoz biosimilar filgrastim (Jan. 7)
- Related tickers: (NYSEMKT:PFNX) (NASDAQ:ESPR) (NYSE:HSP) (NASDAQ:CHRS)
Feb. 25, 2015, 7:36 AM
- The long-anticipated major debut of biosimilars is underway in Europe. South Korean biopharmaceutical firm Celltrion's biosimilar to Janssen's (NYSE:JNJ) Remicade (infliximab) will be launched in Austria, Denmark, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Spain and Sweden under the brand name Inflectra by commercial partner Hospira (NYSE:HSP) (NYSE:PFE) and in Germany, Italy, Britain, the Netherlands, Belgium and Luxembourg under the brand name Remsima by privately-held Indian drug firm Mundipharma.
- Biosimilars to Remicade have been available in certain smaller markets in Europe for several months, but this is the first move into major markets so the results will closely watched from the global biotech industry.
- Remicade generated almost $6.9B in sales for J&J the past four quarters, including ~$2.3B in Europe.
- Remsima was approved by the European Medicines Agency in 2013. The FDA's Arthritis Advisory Committee will meet on March 17 to discuss Celltrion's biologics license application (BLA) for clearance in the U.S.
Feb. 12, 2015, 12:56 PM
- Johnson & Johnson (JNJ -1.6%) slumps on double normal volume after U.S. Patent Office upholds the rejection of its Remicade 2018 patent. Biosimilar makers rally as a result, including thinly-traded nano cap Epirus Biopharmaceuticals (EPRS +15.1%) whose lead product is BOW015, a biosimilar version of Remicade (infliximab).
- Biosimilar-related tickers: (PFE +1.3%)(HSP +0.1%)(AMGN -0.4%)(CHRS +0.2%)(PFNX +14.5%)(NVS -0.2%)
Feb. 12, 2015, 8:38 AM
- Hospira (NYSE:HSP) Q4 results ($M): Revenues: 1,126.5 (+3.9%); Specialty Injectable Pharmaceuticals: 752.8 (+2.7%); Medication Management: 210.7 (-5.0%); Other Pharma: 163.0 (+25.4%); Operating Income: 39.7 (-25.4%); Net Income: 35.8 (+6.9%); EPS: 0.21 (+5.0%); Quick Assets: 802.4 (+0.5%); CF Ops (12 mo.): 661.4 (+108.4%).
Hospira Inc is aprovider of injectable drugs and infusion technologies. The Company's business segments areSpecialty Injectable Pharmaceuticals, Medication Management and Other Pharmaceuticals.
Industry: Drug Delivery & Accessories
Country: United States