07.24.12
22. Hospira
$4.1 Billion
KEY EXECUTIVES:
John C. Staley, Chairman of the Board
F. Michael Ball, CEO
Richard Davies, Sr. VP and Chief Commercial Officer
John B. Elliot, Sr. VP, Operations
Zena G. Kaufman, Sr. VP, Quality
Anil G. D’Souza, Corp. VP, Global Marketing and Corporate Development
Sumant Ramachandra, M.D., Ph.D., Sr. VP, Research & Development and Medical Affairs, and Chief Scientific Officer
NO. OF EMPLOYEES: 15,000
GLOBAL HEADQUARTERS: Lake Forest, Ill.
For Hospira, fiscal year 2011 (ended Dec. 31) began and ended with changes at the top. In March, the board of directors of the Lake Forest, Ill.-based company appointed F. Michael (Mike) Ball as the company’s new CEO and a member of the board. Ball was president of Allergan Inc. (where he had been for 16 years) and he succeeded the company’s founding CEO, Christopher B. Begley, who became executive chairman. Hospira provides infusion therapy, systems and supplies; infusion pumps and other medication management systems; specialty injectables; and contract manufacturing services.
“From the outset of our CEO search, the board and I were determined to identify a candidate who would extend Hospira’s growth trajectory, expand our global reach, and inspire our employees as we continue our patient-focused journey to sustainable top-tier financial performance,” said Begley at the time of the announcement. “With his proven track record of growing complex global businesses, demonstrated success in leading diversified healthcare portfolios and strong commitment to creating value for all company stakeholders, we found the perfect fit with Mike Ball. We are thrilled to welcome Mike to the Hospira family, and I look forward to partnering with him and our board to continue to advance our great company—a company that is stronger and better positioned for success now than at any point in our rich history.”
During his tenure at Allergan, Ball was responsible for accelerating growth in international markets and leading the strategy and execution of global commercial activities for a diverse slate of businesses, including specialty pharmaceuticals, over-the-counter products and surgical devices.
As executive chairman, Begley’s task was to focus on ensuring continuity of leadership, providing strategic counsel to Ball and managing an orderly transition of the CEO responsibilities. Begley assumed his new role after launching Hospira as the company’s founding CEO following its 2004 spin off from Abbott Laboratories. During his tenure, Hospira doubled its market capitalization, geographic footprint and revenue outside the United States; improved adjusted gross margins by more than 1,000 basis points; and generated more than $3 billion in cash flow from operations, according to company statistics.
His new role, however, was short-lived.
In early December, the board announced that Begley would retire as executive chairman. John C. Staley, a founding director of the company’s board, took over as non-executive chairman in January.
For full-year 2011, net sales were $4.1 billion, an increase of 3.6 percent, and earnings per share was $3.04.
“While 2011 was a challenging year as a result of our quality transformation efforts, we met our revised financial expectations, generating over $4 billion in sales, and advanced our remediation efforts,” said Ball. “We made significant progress on many fronts during the year, including the launch in the United States of two important oncolytic products and an anti-infective drug, as well as initiating the Phase III U.S. clinical program for our biosimilar erythropoietin. We remain firmly committed to reinforcing our foundation and instilling a culture of high quality throughout the organization, actions we believe will create a strong competitive advantage for Hospira and position us for sustainable, long-term growth and increased shareholder value.”
Partially offsetting growth was device quality issues (infusion pump recalls), the continued impact on net sales of certain quality actions the company undertook to improve the global status of its regulatory compliance, including responding to the U.S. Food and Drug Administration (FDA) observations and warning letter related to the company’s manufacturing facility in Rocky Mount, N.C.
Income from operations decreased 14.7 percent to $669 million for the full year, compared to $784 million for the full year of 2010. The decline was a result of certain quality actions and
inventory losses.
“While resolving the quality-related issues entails challenges in 2012, we believe that the quality improvement process will make Hospira an even stronger, more competitive global company,” said Ball. “We will also continue investing in Hospira’s growth opportunities in 2012. Reinforcing Hospira’s foundation and driving growth will best position Hospira to serve the needs of our customers and patients, and deliver strong value to our shareholders.”
In 2011, the company announced that it planned to spend as much as $375 million over three years to bring its manufacturing operations up to par. One site of particular focus is Hospira’s Rocky Mount plant, used in the production of parenterals and a part of the company’s contract manufacturing business. The plant provides 25 percent of Hospira’s annual revenue. Approximately 80 percent of the spending is expected to go to Rocky Mount, the report said. The remediation effort will encompass both the pharma and medical device sides of the business.
“Quality assurance auditor” and “senior biological quality supervisor” are among the positions the company hoped to fill by the end of the year, according to reports.
Throughout 2011, Hospira continued efforts to resolve issues with its line of Symbiq infusion pumps.
Listed by the FDA as a Class II recall in November 2010, Hospira continued efforts to resolve issues for the power cord used on the Symbiq one-channel infuser and Symbiq two-channel infuser. Complaints of broken, bent, or missing prongs, charring, sparks, visible smoke, and a burnt smell have been reported on Symbiq AC power cords, resulting in the recall.
Hospira also continued efforts on its Feb. 14, 2011, recall for the 205,689 Plum XL, XLM, and XLD infusion pumps distributed nationwide and internationally. According to the 8-year-old company, Hospira received reports of the Plum XL, XLM, and XLD infusion pumps with no audible alarm at the low-audio-level setting.
At the end of March 2011, the company submitted a 510(k) application with the FDA for modifications to the Symbiq infusion system.
“With this submission complete, we are on track to meet our commitments for resuming new customer shipments of Symbiq infusion pumps and advancing the continuous evolution of one of the most innovative infusion platforms in the hospital today,” said Sumant Ramachandra, M.D., Ph.D., senior vice president, Research & Development and Medical & Regulatory Affairs, and chief scientific officer, Hospira. “As one of the first companies to file an application under the draft FDA guidance for infusion pumps, we are looking forward to continuing to work with the Agency through this new and innovative regulatory process.”
In May 2011, Hospira received regulatory approval from Health Canada for its software upgrade to the Symbiq. In March this year the FDA provided regulatory clearance for the upgraded Symbiq device.
$4.1 Billion
KEY EXECUTIVES:
John C. Staley, Chairman of the Board
F. Michael Ball, CEO
Richard Davies, Sr. VP and Chief Commercial Officer
John B. Elliot, Sr. VP, Operations
Zena G. Kaufman, Sr. VP, Quality
Anil G. D’Souza, Corp. VP, Global Marketing and Corporate Development
Sumant Ramachandra, M.D., Ph.D., Sr. VP, Research & Development and Medical Affairs, and Chief Scientific Officer
NO. OF EMPLOYEES: 15,000
GLOBAL HEADQUARTERS: Lake Forest, Ill.
For Hospira, fiscal year 2011 (ended Dec. 31) began and ended with changes at the top. In March, the board of directors of the Lake Forest, Ill.-based company appointed F. Michael (Mike) Ball as the company’s new CEO and a member of the board. Ball was president of Allergan Inc. (where he had been for 16 years) and he succeeded the company’s founding CEO, Christopher B. Begley, who became executive chairman. Hospira provides infusion therapy, systems and supplies; infusion pumps and other medication management systems; specialty injectables; and contract manufacturing services.
“From the outset of our CEO search, the board and I were determined to identify a candidate who would extend Hospira’s growth trajectory, expand our global reach, and inspire our employees as we continue our patient-focused journey to sustainable top-tier financial performance,” said Begley at the time of the announcement. “With his proven track record of growing complex global businesses, demonstrated success in leading diversified healthcare portfolios and strong commitment to creating value for all company stakeholders, we found the perfect fit with Mike Ball. We are thrilled to welcome Mike to the Hospira family, and I look forward to partnering with him and our board to continue to advance our great company—a company that is stronger and better positioned for success now than at any point in our rich history.”
During his tenure at Allergan, Ball was responsible for accelerating growth in international markets and leading the strategy and execution of global commercial activities for a diverse slate of businesses, including specialty pharmaceuticals, over-the-counter products and surgical devices.
As executive chairman, Begley’s task was to focus on ensuring continuity of leadership, providing strategic counsel to Ball and managing an orderly transition of the CEO responsibilities. Begley assumed his new role after launching Hospira as the company’s founding CEO following its 2004 spin off from Abbott Laboratories. During his tenure, Hospira doubled its market capitalization, geographic footprint and revenue outside the United States; improved adjusted gross margins by more than 1,000 basis points; and generated more than $3 billion in cash flow from operations, according to company statistics.
His new role, however, was short-lived.
In early December, the board announced that Begley would retire as executive chairman. John C. Staley, a founding director of the company’s board, took over as non-executive chairman in January.
For full-year 2011, net sales were $4.1 billion, an increase of 3.6 percent, and earnings per share was $3.04.
“While 2011 was a challenging year as a result of our quality transformation efforts, we met our revised financial expectations, generating over $4 billion in sales, and advanced our remediation efforts,” said Ball. “We made significant progress on many fronts during the year, including the launch in the United States of two important oncolytic products and an anti-infective drug, as well as initiating the Phase III U.S. clinical program for our biosimilar erythropoietin. We remain firmly committed to reinforcing our foundation and instilling a culture of high quality throughout the organization, actions we believe will create a strong competitive advantage for Hospira and position us for sustainable, long-term growth and increased shareholder value.”
Partially offsetting growth was device quality issues (infusion pump recalls), the continued impact on net sales of certain quality actions the company undertook to improve the global status of its regulatory compliance, including responding to the U.S. Food and Drug Administration (FDA) observations and warning letter related to the company’s manufacturing facility in Rocky Mount, N.C.
Income from operations decreased 14.7 percent to $669 million for the full year, compared to $784 million for the full year of 2010. The decline was a result of certain quality actions and
inventory losses.
“While resolving the quality-related issues entails challenges in 2012, we believe that the quality improvement process will make Hospira an even stronger, more competitive global company,” said Ball. “We will also continue investing in Hospira’s growth opportunities in 2012. Reinforcing Hospira’s foundation and driving growth will best position Hospira to serve the needs of our customers and patients, and deliver strong value to our shareholders.”
In 2011, the company announced that it planned to spend as much as $375 million over three years to bring its manufacturing operations up to par. One site of particular focus is Hospira’s Rocky Mount plant, used in the production of parenterals and a part of the company’s contract manufacturing business. The plant provides 25 percent of Hospira’s annual revenue. Approximately 80 percent of the spending is expected to go to Rocky Mount, the report said. The remediation effort will encompass both the pharma and medical device sides of the business.
“Quality assurance auditor” and “senior biological quality supervisor” are among the positions the company hoped to fill by the end of the year, according to reports.
Throughout 2011, Hospira continued efforts to resolve issues with its line of Symbiq infusion pumps.
Listed by the FDA as a Class II recall in November 2010, Hospira continued efforts to resolve issues for the power cord used on the Symbiq one-channel infuser and Symbiq two-channel infuser. Complaints of broken, bent, or missing prongs, charring, sparks, visible smoke, and a burnt smell have been reported on Symbiq AC power cords, resulting in the recall.
Hospira also continued efforts on its Feb. 14, 2011, recall for the 205,689 Plum XL, XLM, and XLD infusion pumps distributed nationwide and internationally. According to the 8-year-old company, Hospira received reports of the Plum XL, XLM, and XLD infusion pumps with no audible alarm at the low-audio-level setting.
At the end of March 2011, the company submitted a 510(k) application with the FDA for modifications to the Symbiq infusion system.
“With this submission complete, we are on track to meet our commitments for resuming new customer shipments of Symbiq infusion pumps and advancing the continuous evolution of one of the most innovative infusion platforms in the hospital today,” said Sumant Ramachandra, M.D., Ph.D., senior vice president, Research & Development and Medical & Regulatory Affairs, and chief scientific officer, Hospira. “As one of the first companies to file an application under the draft FDA guidance for infusion pumps, we are looking forward to continuing to work with the Agency through this new and innovative regulatory process.”
In May 2011, Hospira received regulatory approval from Health Canada for its software upgrade to the Symbiq. In March this year the FDA provided regulatory clearance for the upgraded Symbiq device.
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