BOSTON, Feb. 5, 2015 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a law firm representing shareholders nationwide, with offices in Boston and the San Francisco Bay area, is investigating possible breaches of fiduciary duty by the Board of Directors of Hospira, Inc. ("Hospira" or the "Company") (NYSE: HSP) concerning the proposed acquisition of the Company by Pfizer Inc. ("Pfizer") (NYSE: PFE). Hospira,is a provider of injectable drugs and infusion technologies that it develops, manufactures, distributes and markets globally. Its portfolio includes generic injectables, biosimilars, and integrated infusion therapy and medication management products.
According to Reuters, "[d]rugmakers are racing to develop biosimilars, which typically cost 20-30 percent less than the original, as big-ticket patents on biotech drugs expire and cash-strapped healthcare systems look to cut costs. Biosimilars are expected to account for about a quarter of the $100 billion in sales stemming from off-patent biological drugs by the end of the decade …." Hospira is uniquely situated in this market because it was one of the first U.S. drug makers providing biosimilars to patients in Europe and Australia.
Under the terms of the proposed transaction, shareholders of the Company will receive $90.00 per share, representing a premium of just 39%. This transaction appears to be far below that received in recent similar industry transactions. Hospira's stock price has surged over the last 3 months. According to the companies, the transaction will close in the second half of 2015.
Block & Leviton's investigation seeks to determine, among other things, whether directors of the Company breached their fiduciary duties by failing to maximize shareholder value in the potential acquisition and the process by which the directors considered and approved the transaction. The investigation also seeks to determine whether Pfizer aided and abetted the Company's potential breach of fiduciary duty.
If you are a shareholder of Hospira and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at (617) 398-5600 or email him at [email protected].
Block & Leviton is a national law firm that represents consumers throughout the United States. The firm's lawyers have collectively been representing plaintiffs for decades. This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
[email protected]
(617) 398-5600
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SOURCE Block & Leviton LLP