Pfizer rallies over 6% on acquisition plans; scales above Rs 2000

NEW DELHI: Pfizer Ltd rallied as much as 6.3 per cent in trade, after its parent Pfizer Inc said it would buy Hospira Inc for about $15 billion to boost its portfolio of generic injectable drugs and copies of biotech medicines.

At 09:40 a.m.; Pfizer Ltd was trading 5.1 per cent higher at Rs 2060. It hit a low of Rs 1980 and a high of Rs 2081.95 in trade today.

Pfizer is known for prescription medicines like impotence treatment Viagra and Lyrica for nerve pain, but many of its biggest brands, including cholesterol treatment Lipitor and painkiller Celebrex, have lost patent protection and are facing cheaper generics, said a Reuters report.

The company needs new products to keep its earnings growing, added the report. Hospira makes generic versions of injectable drugs that are widely used in hospitals, through vials, syringes and bags, as well as pumps used to deliver them and other fluids.

As per the report, Pfizer offered $90 per share in cash, a 39 percent premium to Hospira's closing stock price on Wednesday. The proposed acquisition is Pfizer's largest since the New York company failed in its attempt to buy AstraZeneca.