Hospira, Philips awarded $69M in DOD contracts

Just as its acquisition by Pfizer closed, Hospira nabbed a $50 million contract from the U.S. Department of Defense. This injectable drug and infusion tech company was not alone on the DOD list. Philips Healthcare ($PHG) was also awarded an $18.8 million contract in the same Sept. 2 disclosure from the DOD.

The contract comes at a fortuitous time for Hospira--which has been plagued recently by ongoing concerns from various regulators and enforcement agencies regarding the security of one of its infusion pumps. It's also timely since its acquisition by Pfizer ($PFE) on Sept. 3.

"We believe that through this transaction, we've created value for our shareholders by delivering incremental revenue and expected EPS growth in the near-term by strengthening our GEP [Global Established Pharmaceutical] business and positioning it for future growth," Pfizer chairman and CEO Ian Read said in a statement on the deal closure.

The DOD Hospira contract has a one-year base period with up to 7 additional option periods. It will be performed in Illinois, with a slated completion date of September 2016. The contracted Hospira products will go to the Army, Navy, Air Force, Marine Corps as well as federal civilian agencies. It was a competitive bidding process with 35 responses.

As for Philips, the DOD signed on for biomedical equipment earmarked for Air Force and Army military treatment facilities. Philips has an established, ongoing relationship with the Defense Health Agency, which enables the Army, Navy, and Air Force medical services. The company's offerings for the DOD include wellness, quality of care as well as diagnostics and treatment devices for the battlefield and the clinical setting.

- here is the announcement