Hospira (HSP) May Find Itself a Takeover Target
Tweet
Share
E-mail
Get Alerts HSP Hot Sheet
Join SI Premium – FREE
Trading at $28.29 per share, the market cap on Hospira Inc. (NYSE: HSP) has now become so cheap that some analysts are beginning to look at the company as a strategic acquisition opportunity, Bloomberg reports.
Due to quality control problems, shares of the world's third largest producer of specialty generic injectable drugs, a $12 billion market which is growing at a rate of 5 percent annually, have fallen roughly 49 percent this year.
An analyst at Collins Stewart claims that shares may go for as much as $60 per share in a takeover, while others believe the FDA warnings may keep large bid offers off of the table.
Bloomberg notes HSP is the lowest valued generic pharmaceutical company in America with a market value over $500 million, shares of HSP closed at 1.46 times the company’s book value on December 1, 2011.
Some potential buyers of Hospira include Fresenius (NYSE: FMS) and Teva (Nasdaq: TEVA) as they both try to gain more market share in the specialty injectable generic drug market.
The American Society of Health-System Pharmacists said last month that 232 drugs have been under supplied with a majority of them coming from the generic injectables market.
Due to quality control problems, shares of the world's third largest producer of specialty generic injectable drugs, a $12 billion market which is growing at a rate of 5 percent annually, have fallen roughly 49 percent this year.
An analyst at Collins Stewart claims that shares may go for as much as $60 per share in a takeover, while others believe the FDA warnings may keep large bid offers off of the table.
Bloomberg notes HSP is the lowest valued generic pharmaceutical company in America with a market value over $500 million, shares of HSP closed at 1.46 times the company’s book value on December 1, 2011.
Some potential buyers of Hospira include Fresenius (NYSE: FMS) and Teva (Nasdaq: TEVA) as they both try to gain more market share in the specialty injectable generic drug market.
The American Society of Health-System Pharmacists said last month that 232 drugs have been under supplied with a majority of them coming from the generic injectables market.
Create E-mail Alert Related Categories
Mergers and Acquisitions, RumorsRelated Entities
Collins StewartSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
