Orchid Chemical shares gain on Pfizer-Hospira deal

Shares of Orchid Chemical and Pharmaceuticals jumped 5 per cent, before retreating later, on hopes of higher business after a $15 billion deal between Pfizer Inc and Hospira Inc.

Pharmaceutical giant Pfizer on Thursday said it would buy its smaller rival to boost its portfolio of generic injectable drugs and biotech medicines.

Traders speculate Orchid may get more business from the combined entity as it already supplies to Hospira. The company also has an agreement with Pfizer for contract research and manufacturing services.

Shares of the company jumped 5 per cent before closing 2.9 per cent higher at Rs 65.55 on the Bombay Stock Exchange. The scrip jumped 2.97 per cent to Rs 65.80 on the National Stock Exchange.

Hospira has already completed acquisition of Orchid's Active Pharmaceutical Ingredient manufacturing in July 2014.

(Reuters)