We are upgrading Hospira (HSP) shares to Outperform from Neutral based on certain positive catalysts including the recent acquisition of Javelin Pharmaceuticals. The acquisition helps Hospira access Dyloject, a post-operative pain management drug, currently under FDA review.
We believe Dyloject, upon successful commercialization, will boost the company’s top line. Furthermore, the recent expansion of Hospira’s supply agreement with Genzyme should bring in additional revenues for Hospira. Additionally, Hospira reported another strong quarter led by its SIP segment.
Hospira has been launching several new products to drive growth. Estimates are on the upswing as well, with 2010 and 2011 EPS estimates projecting year-over-year growth of 11.9% and 17.8%, respectively.Zacks Investment Research
