Hospira to buy manufacturing facility from Orchid Chemicals

The factory, located in Aurangabad in Maharashtra, manufactures active pharmaceutical ingredients. It was constructed in 2000 and has 640 employees.

The R&D facility in Chennai has about 160 scientific personnel.

Lake Forest, Illinois-based Hospira said it expects the acquisitions to reduce costs, help supply key antibiotic products and pave the way for development of active pharmaceutical ingredients.

Hospira estimates the deal to break even or slightly add to earnings per share in the first year after it closes - expectedly in the fourth quarter.

Shares of Hospira opened up slightly at USD 33.45 on the New York Stock Exchange on Wednesday.