Hospira has entered into a definitive agreement to purchase Orchid Chemicals&Pharmaceuticals'FDA-approved active pharmaceutical ingredient(API)manufacturing and Chennai-based R&D facilities for approximately$200m.

The acquisition will enable Hospira to integrate certain critical beta-lactam antibiotic APIs(penems and penicillins)into its portfolio.

In addition,controlling the source of beta-lactam APIs will improve the company's security of supply.

As part of the acquisition,Orchid will retain its cephalosporin API business and facilities and will continue to supply Hospira with the associated API.

Hospira managing director Bhaktavatsala Rao said,"Our decision to acquire Orchid's world-class API facility demonstrates Hospira's continued dedication to the antibiotics space,enhancing cost-competitiveness and ensuring continuity of supply."