Hospira has agreed to acquire Orchid Chemicals & Pharmaceuticals’ penicillin and penem API business, including an API manufacturing plant and an associated R&D facility, for approximately US$200 M. The acquisition is expected to reduce Hospira’s cost base in this therapeutic area and support continuity of supply for certain of its key antibiotic products. For Orchid, the proceeds from the transaction will be used to deleverage its debt position and fund entry into new product verticals.