Pfizer is planning to lead the generics and biosimilars market
Pfizer is planning to lead the generics and biosimilars market. Pharmaceutical giant Pfizer has announced the acquisition of American Hospira for US$17 billion. Hospira products will become a part of Pfizer’s Global Established Pharmaceuticals (GEP) generics unit. Presumably GEP is a candidate for a potential spinoff. If the acquisition deal takes place, GEP will become the world’s largest developer of biosimilars and generics by 2018. GEP sales amounted to US$27.6 billion in 2013, according to Pfizer press release on 2014 results. Therefore, GEP revenue already exceeded total turnovers of Teva (US$20.3 billion) and Sandoz (US$9.2 billion). Hospira’s turnover amounted to $3.2 billion in 2013 with $2.4 billion derived from prescription generics sales. Pfizer is particularly interested in the opportunity to merge injectable generics businesses of the two companies in order to successfully further its positions on this large and fast-growing market. Hospira also offers an attractive marketed portfolio of biosimilar adalimumab, filgratim and Retocrit (epoetin zeta) as well as 11 follow-on biologics in various stages of clinical development.
Sources: Generics and Biosimilars Initiative, Vidal, EvaluatePharma®, Pfizer press release on 2014 results, Novartis press release on 2013 results