Hospira Sinks After Pulling 2013 Forecast on Import Ban
Hospira Inc., a maker of generic drugs, fell the most in almost 15 months after the company withdrew its 2013 forecast because U.S. regulators banned imports of infusion pumps made in its Costa Rica facility.
Hospira dropped 7.2 percent to $30.31 at 10 a.m. New York time, after sinking to as low as $29.51 for the biggest intraday decline since November 2011. The shares of the Lake Forest, Illinois-based company had fallen 4.6 percent in the 12 months through yesterday.
If the import ban stays in place throughout 2013, the impact could be $50 million to $100 million in decreased sales and as much as 20 cents a share in reduced earnings, Hospira said today in a regulatory filing. The company plans to provide new forecasts on its first-quarter earnings call.
The Food and Drug Administration had prohibited importation of Hospira’s Symbiq infusion pumps into the U.S. in November, and yesterday expanded the ban to include the Plum, GemStar and LifeCare PCA infusion products, all manufactured in Costa Rica, Hospira said.
“The company takes this matter seriously,” Hospira said in the filing. “Any further actions by the FDA could have a material adverse impact on our financial position and operating results.”
Hospira yesterday forecast earnings of $1.32 to $1.47 a share for 2013, or $2.05 to $2.20 excluding one-time items.
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