Hospira, Inc. Q3 2009 Earnings Call Transcript

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2009-10-27 11:18:10.0

Tags: Goldman Sachs Group Inc., Hospital, Hospira Inc., Call Transcript, Earnings, Healthcare, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). Our first question comes from David Roman with Goldman Sachs.

David RomanGoldman Sachs

Good morning, Chris and everybody. Thank you for taking the question. Could you just maybe talk just a little bit more about heparin, what was in the guidance and then remind us of the still unfinished capabilities, whether that's internal or external?

Terry Kearney

David, relative to heparin, we did get approval in late September. It really had somewhat insignificant impact on the quarter's results. We do expect that they continue to evolve over time and going into the fourth quarter into next year and we are very confident that we'll continue to be able to expand our market presence beyond the 15% that we have in the US markets, both for hospital and alternate sites. So, we think we're in very good shape and we do have the capability of full finish. We secured the API and then we do the full finish in our plants in the US.

David RomanGoldman Sachs

Okay. Great. So it's fair to say not a lot in expectations now for heparin?

Terry Kearney

Again, I think we have an ability to expand our share again and again it would take some time over the next intervening quarters, but I think it should be part of our growth that we'll talk about in 2010 that we'll come back in February.

David RomanGoldman Sachs

Then maybe on MMS side, you mentioned that you're not seeing a lot of evidence of an improvement in the operating environment but some other companies have reported look to see at least some stabilization. Could you maybe give us some sense to what the conversations are like right now of hospital purchasing managers, maybe how they compared to six months ago and the types of data points you're looking for to suggest an improvement.

Chris Begley

Sure, David. I'll take that question. I agree with you. There seems to be some conflicting opinions around hospital CapEx environment lately. In my sense from speaking with hospital CEO's is that there's still a fair amount of uncertainty that exists out in the marketplace and I don't believe we're going to see a great deal change in the CapEx environment until there is more of a feeling that the recovery is on its way and it's sustainable for some time period. If I don't see that changing by year end, I would envision that continuing as we move through 2010 as well. Now, having said that, I think the encouraging piece is as it relates to CapEx priorities, smart infusion pumps, still end up being in that upper quartile from a priority standpoint, but with the lack of cash and credits that is available to our hospital customers, I don't see a change in the CapEx spending in the near-term or as we look into 2010 as well.

 

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