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Pfizer allegedly taking bids for Hospira pumps and devices business

by Lauren Dubinsky, Senior Reporter | May 04, 2016
Business Affairs Medical Devices
Courtesy: Hospira
Pfizer is allegedly taking bids for its pumps and devices business, which it acquired from Hospira in September 2015.

Smiths Group Plc, an engineering business in the U.K. and Fresenius SE, a diversified health care company in Germany, are a couple of the bidders, Bloomberg reported. Pamplona Capital Management, a private equity firm, also made a second-round bid.

The final bids are due by the end of this month, and if the unit is sold, Pfizer could make about $2 billion through the deal. However, any deal may still fall apart, according to anonymous sources.

Back in January, there was talk that Pfizer was considering selling the unit. Analysts have speculated that after Hospira's assets were integrated into the company, Pfizer may split off its entire drugs unit from the faster-growing business that includes many of its newer, brand-name drugs, Bloomberg reported at that time.

Hospira has struggled over the years with regulatory issues and most recently, cybersecurity dangers. In August 2015, the FDA issued a statement strongly encouraging health care facilities to stop using Hospira's Symbiq infusion pump because they were vulnerable to cyber attacks.

By selling the pumps and devices unit, it would leave Pfizer with a more "pure-play" drugs unit for a potential spinoff.

At the same time, Pfizer was planning on merging with the pharmaceutical company, Allergan Plc, in a deal valued at $160 billion. But last month Pfizer called the deal off due to new laws from the U.S. Treasury that aimed to prevent tax inversion deals.

“We plan to make a decision about whether to pursue a potential separation of our innovative and established businesses by no later than the end of 2016, consistent with our original time frame for the decision prior to the announcement of the potential Allergan transaction,” Ian Read, chairman and CEO of Pfizer, said in a statement. “As always, we remain committed to enhancing shareholder value.”

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