LAKE FOREST, Ill., Feb. 16 /PRNewswire-FirstCall/ -- Hospira, Inc. , a leading global hospital products manufacturer, the State of Kansas and the Kansas Bioscience Authority (KBA) today announced Hospira’s $60 million investment in its McPherson, Kan., manufacturing facility. The construction project, made possible through a collaboration with the State of Kansas and the KBA, is expected to result in approximately 100 additional jobs at the facility in the areas of manufacturing and research and development. The construction effort began in late 2005 and will convert approximately 120,000 square feet of existing shell space into usable offices, laboratories and manufacturing operations for injectable pharmaceuticals.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040503/HSPLOGO )
“This project underscores the strategic importance of McPherson to Hospira’s overall business objectives,” said Bill Gately, plant manager, McPherson Operations, Hospira. “The announcement of this investment is a testament to the dedication of our employees, the commitment of the community, and the appreciated support from the KBA and the State of Kansas.”
McPherson employees today joined Gately and special guests to celebrate the expansion project with Kansas Governor Kathleen Sebelius; Secretary of the Kansas Department of Commerce Howard Fricke; Clay Blair, chairman, KBA; McPherson Mayor Bill Goering; and John Arnott, senior vice president, Global Commercial Operations, Hospira.
“For years, this plant has had a tremendous impact on McPherson and the surrounding area,” said Governor Sebelius. “The new jobs created from this expansion are a great example of the type of job growth we continue to experience in Kansas. There are more Kansans working now than at any point in our state’s history.”
Anticipating future growth, Hospira previously completed a $50 million expansion of the McPherson facility in 2005, which resulted in the additional 120,000 square feet of space that is being used for the new project. The new expansion project at the McPherson plant will result in approximately an incremental $60 million being invested in the facility and is targeted for completion by early 2008. As a result, the company will expand its manufacturing capacity for existing generic injectable pharmaceuticals and make room for additional products to be manufactured at the plant in the future, including production being transferred from Hospira’s North Chicago, Ill., facility.
Hospira is helping take millions of dollars of costs out of the healthcare system by continuing to expand its portfolio of generic injectable pharmaceuticals. The company currently has a total of 46 injectable products in development, representing 31 different drug compounds. Creating additional capacity will also help the company meet demand for the growth of One2One, Hospira’s leading U.S. injectable contract manufacturing business.
In association with the project, the KBA will partner with Hospira to create a scholars program at the McPherson plant. As part of this initiative, KBA will provide scholarships to help support science internships at the facility for students who attend Kansas Regents universities. Additionally, the KBA will offer signing bonuses and student loan reduction packages for recent graduates of Kansas higher-education science programs who commit to a minimum of two years of full-time employment at the McPherson facility. This partnership will strengthen Hospira’s relationship with local universities and also provide a more formal process for the company and Kansas public universities to work together on recruiting efforts.
“We are pleased to partner with Hospira,” said Clay Blair, chairman, KBA. “It has been a pleasure working with Hospira and Kansas Department of Commerce officials. We are excited to be able to play a role in bringing these new jobs to central Kansas.”
The McPherson plant opened in 1977 and was acquired by Abbott Laboratories in 1997. It became part of Hospira in 2004 when the company was spun off from Abbott and became a publicly traded, independent corporation. There are approximately 740 employees at Hospira’s McPherson plant who make hundreds of products used worldwide in healthcare institutions such as hospitals, doctors’ and dentists’ offices, and clinics.
About the Kansas Bioscience Authority
The Kansas Economic Growth Act created the Kansas Bioscience Authority, a completely independent body composed of prominent local and national leaders in the areas of technology, science and business. The Kansas Bioscience Authority is devoted to guiding the state in the community investment of more than $580 million generated by the Kansas Economic Growth Act.
About Hospira
Hospira, Inc. is a global specialty pharmaceutical and medication delivery company dedicated to Advancing Wellness(TM) by developing, manufacturing and marketing products that help improve the productivity, safety and efficacy of patient care. With 70 years of service to the hospital industry, Hospira’s portfolio includes one of the industry’s broadest lines of generic acute-care injectables, which help address the high cost of proprietary pharmaceuticals; integrated solutions for medication management and infusion therapy; and the leading U.S. injectable contract manufacturing business. Headquartered in Lake Forest, Ill., north of Chicago, Hospira has approximately 13,000 employees and 14 manufacturing facilities worldwide. Hospira’s news releases and other information can be found at http://www.hospira.com .
Private Securities Litigation Reform Act of 1995 --A Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the projected level of capital expenditures, the timing of the investment and the intended usage of the expanded manufacturing facility. Hospira cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Factors, risks and uncertainties that may affect Hospira’s operations and that may cause actual results to be materially different from expectations include Hospira’s ability to complete the investment on the projected time frame and budget and the risks and uncertainties set forth under the heading “Item 1 Business -- Risk Factors” in Hospira’s Annual Report on Form 10-K for the year ended Dec. 31, 2004 and identified in Hospira’s other SEC filings, including its quarterly reports on Form 10-Q, which are incorporated by reference. Hospira undertakes no obligation to release publicly any revisions to forward-looking statements as the result of subsequent events or developments.
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040503/HSPLOGOAP Archive: http://photoarchive.ap.orgPRN Photo Desk, photodesk@prnewswire.comHospira, Inc.
CONTACT: Caleb Asher, of Kansas Department of Commerce, +1-785-296-2477,or, Janet Mosser, of Kansas Bioscience Authority, +1-758-331-0554, or,Tareta Adams, of Hospira, Inc., +1-224-212-2535
Web site: http://www.hospira.com/
