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Quality and product related charges contribute to losses
May 1, 2013
By: Tim Wright
Hospira 1Q Revenues: $884.0 million (-9%) 1Q Loss: $76.6 million (earnings were $40.2 million 1Q12) Comments: Specialty Injectable Pharmaceuticals sales were $651.5 million, up 11%. Medication Management revenues dropped 51% to $124.5 million. Other Pharma sales were $108.0 million, down 12%. Certain quality and product related charges primarily include third party oversight and consulting costs, extended production downtime related costs, failure to supply penalties, device product review and remediation costs to address identified issues, and costs for corrective actions including product recalls.
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