Hospira completes buy of Orchid's API production and R&D facility

US provider of injectable drugs and infusion technologies Hospira (NYSE: HSP) says it has completed the acquisition of an active pharmaceutical ingredient (API) manufacturing facility and an associated R&D facility from India’s Orchid Chemicals & Pharmaceuticals (BSE: 524372) for around $218 million, after settling  prior advances of about $30 million.

"Hospira's acquisition of the Orchid API facility will support supply continuity of key beta-lactam antibiotic products, improve our cost position and pave the way for future API development," said Bhaktavatsala Rao, president and managing director, Hospira India, adding: "We're committed to the antibiotics space, and with our new colleagues from Orchid, we will continue to bring high-quality, lower-cost products to patients around the world."

Expected to improve Hospira's cost position