HOSPIRA TO ACQUIRE MAYNE PHARMA

Hospira has announced it will acquire Australian generic drugmaker Mayne Pharma. Under the terms of the agreement, Mayne shareholders will receive $4.10 (Australian) in cash per outstanding ordinary share of Mayne, or a total equity consideration of approximately $2.6 billion (Australian), including options. The transaction represents a 32 percent premium over Mayne's Sept. 18 closing price.

The companies expect the acquisition to: establish Hospira as the worldwide leader in generic injectable pharmaceuticals; expand and solidify Hospira's oncology presence; and provide Hospira with potent manufacturing and R&D capabilities.

The transaction is subject to Mayne shareholder, regulatory and court approvals, as well as customary closing conditions. Assuming all necessary approvals are secured, the transaction is expected to be completed by the end of the current calendar year. The combination of the two companies is estimated to generate a minimum of $50 million of annualized synergies in 2008, according to Hospira.