EXHIBIT 99.1
NEWS RELEASE
For Immediate Release
HOSPIRA MEDIA
Xxxxxx Xxxxx
(000) 000-0000
FINANCIAL COMMUNITY
Xxxx XxXxxx
(000) 000-0000
ICU MEDICAL
MEDIA AND FINANCIAL COMMUNITY
Xxxxxxx X. X'Xxxxx
(000) 000-0000
Xxxx X. Xxxxx
Integrated Corporate Relations
(000) 000-0000
HOSPIRA AND ICU MEDICAL SIGN MANUFACTURING, COMMERCIALIZATION AND DEVELOPMENT
AGREEMENT FOR CRITICAL CARE PRODUCTS
LAKE FOREST, Ill., and SAN CLEMENTE, Calif., Feb. 28, 2005 -- Hospira,
Inc. (NYSE: HSP), one of the largest hospital products manufacturers in the
United States, and ICU Medical, Inc. (Nasdaq: ICUI), a leading manufacturer of
custom intravenous (I.V.) systems, today announced a strategic manufacturing,
commercialization and development agreement for Hospira's critical care product
line. ICU Medical will purchase Hospira's Salt Lake City manufacturing facility,
and related capital equipment and inventory, for approximately $35 million in
cash,
ICU will assume responsibility for manufacturing the critical care
products currently produced at the plant. Hospira will continue to sell the
critical care products under the Hospira label, and retain commercial
responsibility -- including sales, marketing, customer contracting, customer
service and distribution.
The two companies also have committed to joint product development
efforts on the critical care product line, which includes medical devices such
as catheters, angiography kits and cardiac monitoring systems.
"Combining Hospira's sales and marketing efforts with ICU Medical's
unique expertise in cost-efficient custom manufacturing better positions us to
meet our customers' evolving needs for more specialized critical care products,"
said Xxxx Xxxxxx, senior vice president, Global Commercial Operations, Hospira.
"This partnership also provides a strong foundation for future product
advancements in the critical care area."
This new partnership builds on a 10-year relationship between Hospira
and ICU. The completion of the transaction is subject to customary closing
conditions and is expected to close by early second quarter. The deal is
expected to result in a pre-tax charge to Hospira of approximately $20 million.
The charge primarily relates to Hospira's expected obligations to be assumed
under its agreement with ICU as well as a loss on the sale of assets at closing.
Excluding the charge, the deal is not expected to impact the results of
Hospira's 2005 ongoing operations.
"We are thrilled with this opportunity to further expand our portfolio
of custom product offerings and strengthen our relationship with Hospira by
working jointly on future development efforts for custom critical care
products," said Xxxxxx Xxxxx, M.D., chairman and president, ICU Medical. "This
transaction is an ideal means to capitalize on the expanding custom critical
care market and ICU's core competencies in custom manufacturing."
HOSPIRA AND ICU MEDICAL SIGN MANUFACTURING,
COMMERCIALIZATION AND DEVELOPMENT AGREEMENT FOR CRITICAL CARE PRODUCTS
PAGE 2
ABOUT ICU MEDICAL
ICU Medical develops, manufactures and sells medical connectors and
custom intravenous systems. The company's patented manufacturing method of
producing and delivering low-cost, high-quality custom products fast and cost
effectively has made it a leader in the custom I.V. system field.
ABOUT HOSPIRA
Hospira, Inc. is a global specialty pharmaceutical and medication
delivery company dedicated to Advancing Wellness(TM) by developing,
manufacturing and marketing products that help improve the safety and efficacy
of patient care. Created from the core global hospital products business of
Xxxxxx Laboratories, Hospira is a new company with 70 years of service to the
hospital industry. The company's portfolio includes: one of the industry's
broadest lines of generic acute-care injectables, which help address the high
cost of proprietary pharmaceuticals in hospitals; integrated solutions for
medication management and infusion therapy; and the leading U.S. injectable
contract manufacturing business. Headquartered in Lake Forest, Ill., north of
Chicago, Hospira has more than 14,000 employees and 15 manufacturing facilities
worldwide. Hospira's news releases and other information can be found at
xxx.xxxxxxx.xxx.
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 --
A CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
SOME STATEMENTS IN THIS NEWS RELEASE MAY BE FORWARD-LOOKING STATEMENTS
FOR PURPOSES OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. HOSPIRA
AND ICU MEDICAL CAUTION THAT THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO
RISKS AND UNCERTAINTIES THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE INDICATED IN THE FORWARD-LOOKING STATEMENTS. ECONOMIC, COMPETITIVE,
GOVERNMENTAL, TECHNOLOGICAL AND OTHER FACTORS THAT MAY AFFECT HOSPIRA OR ICU
MEDICAL OPERATIONS AND MAY CAUSE ACTUAL RESULTS TO BE MATERIALLY DIFFERENT FROM
EXPECTATIONS INCLUDE THE RISKS AND UNCERTAINTIES SET FORTH IN THE INFORMATION
STATEMENT UNDER THE HEADING "RISK FACTORS" IN THE MOST RECENT VERSION OF THE
HOSPIRA FORM 10 FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC), AS WELL
AS THE RISKS AND UNCERTAINTIES SET FORTH IN ICU MEDICAL'S CURRENT REPORT ON FORM
8-K, DATED FEB. 15, 2002, FILED WITH THE SEC; BOTH OF WHICH ARE INCORPORATED BY
REFERENCE. HOSPIRA AND ICU MEDICAL UNDERTAKE NO OBLIGATION TO RELEASE PUBLICLY
ANY REVISIONS TO FORWARD-LOOKING STATEMENTS AS THE RESULT OF SUBSEQUENT EVENTS
OR DEVELOPMENTS.
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