Hospital products division will be called Hospira when deal
completed in first half of 2004
The hospital products division of Abbott Laboratories, Morgan Hill’s second largest private sector employer, is splitting off from the parent company to form an independent company called Hospira.
Employees of Abbott, including the 600 plus at the local branch located at 755 Jarvis Drive since 1996, chose the name themselves. Hospira will start up in the first half of 2004 and expects to have 14,000 employees and an expected $2.5 billion in sales. Morgan Hill’s facility will be one of many.
“The employee selection of our new company name is an important milestone in creating the identity for what will be one of the leading global manufacturers of hospital products,” said Christopher B. Begley, who is currently senior vice president, hospital products, Abbott Laboratories, and has been named chief executive officer, Hospira.
Abbott announced in August that it would spin off the new company from its worldwide hospital products business. Hospira will be large enough, a press release said Thursday, to make it one of the largest manufacturers of its kind in the world,
Abbott spokeswoman Shannon Gore said Morgan Hill facility employees won’t see much day-to-day change, except in the company name and logo.
“Morgan Hill is a key facility in electric delivery systems and infusion systems,” Gore said. “Nothing will change for our employees here in Morgan Hill.”
The parent company has, for almost 70 years, concentrated on the discovery, development, manufacture and marketing of pharmaceuticals, nutritionals, and medical products, including devices and diagnostics, employing more than 70,000 people worldwide and markets its products in more than 130 countries. In Morgan Hill the focus has been on devices and diagnostics.
Based in Abbott Park, Ill., Abbott Labs has been honored as one of the 10 best companies for working mothers by Working Mother magazine. Abbott has traditionally remained fiscally sound during economic slumps.
The parent company this fall declared its 319th consecutive quarterly dividend and declared an 11.6 percent sales increase in the third quarter of 2003.
Hospira will devote itself to medication delivery and management systems – including electronic pumps – critical care products and injectible pharmaceuticals, managing the manufacturing and marketing itself.
The word “Hospira” is derived from the words hospital, spirit, inspire and the Latin word spero, which means hope.
Anritsu, formerly Wiltron Corp., remains Morgan Hill’s largest private employer with more than 700 employees.
“We are confident Hospira will live up to the qualities embodied in its name,” Begley said. “It is an exciting time for us as we chart a new course together to establish this company and leverage our nearly 70 years of hospital products experience.”
Details about Hospira can be found at www.abbott.com
