Hospira Reports Fourth-Quarter And Full-Year 2014 Results

LAKE FOREST, Ill., Feb. 12, 2015 /PRNewswire/ -- Hospira, Inc. (NYSE: HSP), the world's leading provider of injectable drugs and infusion technologies, and a global leader in biosimilars, today reported results for the fourth quarter and full year ended Dec. 31, 2014. For the fourth quarter of 2014, net sales were $1.1 billion, and adjusted* diluted earnings per share were $0.53. (Adjusted* measures exclude certain specified items as described later in this press release and the attached schedules.) On a U.S. Generally Accepted Accounting Principles (GAAP) basis, fourth-quarter 2014 diluted earnings per share were $0.21. For full-year 2014, net sales were $4.5 billion, and adjusted* diluted earnings per share were $2.59. On a GAAP basis, full-year 2014 diluted earnings per share were $1.95.

"Hospira's solid fourth-quarter results contributed to a year of excellent growth for the company," said F. Michael Ball, chief executive officer. "Despite the entry of generic competition in the United States for our proprietary sedative Precedex, we delivered a very good year for Hospira. Our results speak to the significant progress we made -- as well as the multiple milestones we achieved -- in our key growth areas of generic injectables, biosimilars and devices.

"In addition," Ball continued, "on Feb. 5, 2015, Pfizer and Hospira announced that the two companies have entered into a definitive merger agreement under which Pfizer will acquire Hospira for $90 a share in cash for a total enterprise value of approximately $17 billion. The Pfizer-Hospira combination is an excellent strategic fit, presenting a unique opportunity to leverage the complementary strengths of our robust portfolios and rich pipelines."

The transaction, which is subject to customary closing conditions, including regulatory approvals in several jurisdictions and approval of Hospira's shareholders, is expected to close in the second half of 2015.

Fourth-Quarter 2014 Results
The following table highlights selected financial results for the fourth quarter of 2014 compared to the same period in 2013:

In $ millions, except per share amounts

GAAP
Three Months Ended
Dec. 31,

 

 

% Change

Adjusted*
Three Months Ended
Dec. 31,

 

 

% Change


2014

2013

2014

2013

Net Sales

$1,126.5

$1,084.4

3.9%

$1,126.5

$1,084.4

3.9%

Gross Profit (Net Sales less Cost of Products Sold)

$385.6

$321.6

19.9%

$439.1

$398.2

10.3%

Income from Operations

$39.7

$53.2

(25.4)%

$121.4

$128.8

(5.7)%

Diluted Earnings per Share

$0.21

$0.20

5.0%

$0.53

$0.51

3.9%

Statistics (as a % of Net Sales, except for Income Tax Rate)

Gross Profit (Net Sales less Cost of Products Sold)

34.2%

29.7%


39.0%

36.7%


Income from Operations

3.5%

4.9%


10.8%

11.9%


Income Tax Rate

(55.7)%

(7.6)%


13.1%

21.4%


 

Results under U.S. GAAP include items as detailed in the schedules attached to this press release.

Net sales increased 3.9 percent to $1.1 billion in the fourth quarter of 2014. Excluding the impact of foreign currency fluctuations, net sales increased 6.2 percent. The majority of the increase was due to continued strong U.S. Specialty Injectable Pharmaceuticals (SIP) and Other Pharma sales, driven primarily by favorable pricing, competitive supply issues and continued strength in supply. Offsetting the positive results were the expected decline of Precedex, the oncolytic drug docetaxel and Medication Management sales, which related primarily to the divestiture of the TheraDoc clinical surveillance software business.

To read full press release, please click here.

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