Morningstar Rating

Stock Research and Analysis

by Michael Waterhouse

Bulls Say

Hospira is one of the first companies to successfully produce and market biosimilars, including competing versions of Epogen, Neupogen, and Remicade.
Hospira's international expansion, particularly in Europe, should drive additional growth during the next few years.
High barriers to entry in Hospira's pharmaceutical and device markets help protect market share and returns on capital. Read more 

Bears Say

Management's inability to ameliorate manufacturing issues in a timely manner could result in harsher FDA penalties, including fines under a consent decree.
A 2014 patent expiration on Hospira's branded anesthetic Precedex and commencement of the medical-device tax will add pressure to the company's profitability.
Sales of Hospira's medical devices should remain depressed until the FDA's import ban is removed and hospital spending improves. Read more 

Management

We give Hospira average marks for stewardship. Hospira's current manufacturing challenges raise doubts about the company's historical capital allocation practices, and returns on capital have fallen considerably on the company's recent operational mishaps.  Read more 

Profile

With headquarters in Illinois, Hospira manufactures injectable generic pharmaceuticals and medication-management devices and systems, which make up about 75% and 25% of   Read more 

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