NEW YORK, and LAKE FOREST, Ill. — Pfizer Inc. plans to buy Hospira Inc., a leading injectable drugs, infusion technology and biosimilar company, in a deal valued at $17 billion.

The companies said Thursday that their boards have unanimously approved the acquisition transaction, which is expected to close in the second half of this year, pending approval of Hospira’s shareholders, regulatory approvals and customary closing conditions.

"The proposed acquisition of Hospira demonstrates our commitment to prudently deploy capital to create shareholder value and deliver incremental revenue and EPS growth in the near-term,” said Ian Read, Chairman and Chief Executive Officer, Pfizer. “In addition,

"Hospira’s business aligns well with our new commercial structure and is an excellent strategic fit for our Global Established Pharmaceutical [GEP] business, which will benefit from a significantly enhanced product portfolio in growing markets," Pfizer chairman and chief executive officer Ian Read said in a statement. "Coupled with Pfizer’s global reach, Hospira is expected to drive greater sustainability for our GEP business over the long term."

Pfizer noted that the expanded portfolio of sterile injectable pharmaceuticals — comprising Hospira’s broad generic sterile injectables product line (including acute care and oncology injectables as well as its biosimilars portfolio — combined with GEP’s branded sterile injectables (including anti-infectives, anti-inflammatories and cytotoxics) will create a leading global sterile injectables business.

The combination also reinforces GEP’s growth strategy to build a broad portfolio of biosimilars in Pfizer’s therapeutic areas of strength through the addition of Hospira’s portfolio that includes several marketed biosimilars. Pfizer said it will also use its commercial capabilities, global scale, scientific expertise and development capabilities to expand the reach of Hospira’s products — currently distributed primarily in the United States — to Europe and key emerging markets.

"The addition of Hospira has the potential to fundamentally improve the growth trajectory of the Global Established Pharmaceutical business, vault it into a leadership position in the large and growing off-patent sterile injectables marketplace by combining the specialized talent and capabilities of both companies, including enhanced manufacturing, and advance its goal to be among the world’s most preeminent biosimilars providers," stated John Young, group president of Pfizer’s GEP business. "We’re excited to combine Hospira’s expertise and key talent with that of Pfizer to create a leading global business that will deliver an even broader portfolio of important and life-saving sterile injectable medicines to patients around the world."

Sterile injectables and biosimilars are large and growing categories, the companies noted. The global marketplace value for generic sterile injectables is estimated to be $70 billion in 2020. The global marketplace for biosimilars is forecast at about $20 billion for 2020.

"The Pfizer-Hospira combination is an excellent strategic fit, presenting a unique opportunity to leverage the complementary strengths of our robust portfolios and rich pipelines," commented F. Michael Ball, CEO of Hospira.