Pfizer Inc.'sPFE shares gained 1.26% with the company boosting its outlook for 2015. The company, which recently completed its acquisition of Hospira, said that the deal is expected to push up 2015 revenues and earnings by $1.5 billion and 3 cents, respectively. As a result, Pfizer now expects to earn $2.04 - $2.10 per share on revenues of $46.5 billion - $47.5 billion this year.
With the Hospira acquisition, Pfizer has significantly expanded its sterile injectable and biosimilar capabilities. The acquisition has provided Pfizer with Hospira's lucrative biosimilar portfolio of both marketed and pipeline assets.
Hospira already has a strong position in the biosimilar market in the EU where several of its biosimilar offerings are available. Meanwhile, the company has filed regulatory applications in the U.S. for a couple of biosimilars.
Biosimilars have been in the limelight ever since the FDA approved Sandoz's Zarxio, a biosimilar version of Amgen's AMGN blockbuster drug, Neupogen (filgrastim). Launched last month in the U.S., Zarxio's performance will be a matter of interest.
On a recent conference call, Pfizer had mentioned that it sees the biosimilars market growing from about $2 billion now to $20 billion by the end of the decade. The company also expects sterile injectables to grow from around $35 billion now to $70 billion by the end of the decade.
Pfizer has had its share of challenges over the last few years with most of its blockbuster drugs going generic and new products not bringing in enough revenues to drive the top-line. Overall, the Hospira acquisition is expected to deliver $800 million in synergies - 55% in year one, 75% in year two and 100% in year three.