Hospira (HSP) makes and sells a product that presumably would be in high demand these days: drugs delivered in hospitals and healthcare settings. However, a Food and Drug Administration (FDA) review of manufacturing processes have slowed share appreciation for now, according to analysts. Hospira looks to bounce back from FDA-driven slowdowns.

Hospira is a global provider of injectable drugs and infusion technologies. Its portfolio includes generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management products. Hospira products are used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities.

Hospira was spun off from Abbott Laboratories (ABT) in 2004. The company's operations worldwide are managed in three reportable segments: Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific (APAC). Net sales in the Americas segment accounted for approximately 79 percent of Hospira's 2011 net sales. Net sales in the EMEA and APAC segments comprised approximately 13 percent and 8 percent, respectively.

In all segments, Hospira sells a broad line of products, including specialty injectable and other pharmaceuticals and medication management products. Specialty injectable pharmaceutical products represented approximately 63 percent of Hospira's net sales in 2011.

Hospira's specialty injectable pharmaceuticals also include biologic products, which are large complex molecules derived from cells that are demonstrated to be similar to an approved originator product, called “biosimilars.”

Medication management products represented approximately 24 percent of Hospira's net sales in 2011 and includes electronic drug delivery pumps, safety software and disposable administration sets dedicated to Hospira pumps.

“Hospira believes that novel drug delivery formats are key points of product differentiation for generic injectable pharmaceuticals. Hospira offers a wide variety of drug delivery options, and believes that its products assist its customers' efforts to enhance safety, increase productivity and reduce waste,” HSP management said in a recent filing.

Hospira has a market cap of $5.41 billion in a sector, pharmaceuticals, where the average company size is $21.59 billion. Its projected earnings per share growth for the coming year is 24.88 percent, compared to a sector average of 6.67 percent.

Bearish

Analysts are broadly bearish on HSP, with Merrill Lynch alone in the buy camp and sell calls in from Citigroup Investment Research, UBS, and RBC Capital Markets.

Standard & Poor’s calls the stock a hold. “Our hold recommendation reflects a view that drug supply constraints due to facility remediation efforts undertaken in late 2011 are likely to limit share appreciation prospects in the near term,” S&P analysts recently wrote in a review of Hospira’s prospects.

“Over the long-term, however, we believe that results should benefit from a global expansion strategy for its generic specialty injectable pharmaceutical pipeline, and resumption of normal medical device shipments after a period of quality control-related holds.”

“We also see unappreciated promise for its biosimilars portfolio, where HSP has launched two drugs in Europe and is advancing in the U.S.”

Hospira next reports on May 1, 2013.