Hospira Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, net sales were $884 million against $965.9 million a year ago. Loss from operations was $118.6 million against income form operation $46.7 million a year ago. Loss before income taxes was $140.5 million against income before income taxes of $23.1 million a year ago. Net loss was $76.6 million or $0.46 per diluted share against net income of $40.2 million or $0.24 per diluted share a year ago. Adjusted Net Sales were $988.3 million against $965.9 million a year ago. Adjusted income from operations was $101.2 million against $104.2 million a year ago. Adjusted net income was $86.1 million or $0.52 per diluted share against $78.4 million or $0.47 per diluted share a year ago. Net cash provided by operating activities was $20.8 million against $87.0 million a year ago. Capital expenditures (including instruments placed with or leased to customers) was $68.6 million against $67.3 million a year ago. Purchases of intangibles and other investments was $7.9 million against $3.6 million a year ago. The decrease in cash flow is primarily due to lower income from operations in 2013 primarily related to investments in the company's quality-improvement initiatives, as well as to higher inventory levels and other payments. The loss from operations was mainly due to the impact of charges related to the company's new device strategy. For full-year 2013, Hospira expects the year-over-year change to adjusted net sales to be negative 1% to positive 1%. On a GAAP basis, the year-over-year change to net sales is expected to range between negative 4% and negative 2%, due to the impact of customer sales allowances associated with the company's device strategy. Adjusted diluted earnings per share for 2013 are expected to be in a range of $2.00 to $2.10, representing flat to 5% growth. GAAP diluted earnings per share for 2013 are expected to be in a range of $0.17 to $0.27. The company projects that cash flow from operations in 2013 will be between $200 million and $250 million. Depreciation and amortization is expected to be between $255 million and $275 million, and capital expenditures are projected to range between $425 million and $475 million. Effective tax rate for the remaining three quarters of this year is expected to be between 17% and 18%.

Apotex Corp. announced that it is conducting, on behalf of the manufacturer Hospira Inc., a voluntary nationwide recall of 15 lots of Piperacillin and Tazobactam for Injection, USP 40.5 grams, NDC number 60505-0773-00 to the hospital /healthcare provider /user level. The impacted lots of Piperacillin and Tazobactam for Injection, USP 40.5 grams may show precipitation /crystallization in IV bag or IV line after reconstitution. Hospira has stated that administration of precipitated Piperacillin /Tazobactam in an IV bag or IV line may result in local reactions such as phlebitis, renal impairment, end-organ embolism and ischemia, and/or vasculitis (because the precipitate was visible, its particles may be large enough to cause these adverse events). In addition, the precipitation of the drug may not allow delivering a needed therapeutic dose of piperacillin and tazobactam, thus resulting in inadequate treatment of the targeted infection. This could result in adverse health consequences that could range from transient and minor impairment or complaints to permanent impairment of a body function or permanent damage to a body structure. Hospira has not received any reports of adverse events related to this recall. The product is indicated for the treatment of patients with moderate to severe infections caused by piperacillin-resistant, piperacillin/tazobactam-susceptable, ß-lactamase producing strains of the designated microorganisms in the specified conditions such as, Appendicitis, Uncomplicated and Complicated skin and skin structures infections, Postpartum Endometritis or Pelvic Inflammatory disease, Community Acquired Pneumonia and Nosocomial Pneumonia. The product is packaged in 300 mL glass vials for reconstitution. The product can also be identified by NDC number 60505-0773-00 and UPC 360505077304. The product was distributed nationwide in the United States to wholesalers, distributors, HMOs, home infusion and long term care service providers. The product and all recalled lots are manufactured by Hospira. Apotex is the U.S. distributor of the product and is conducting the recall at the request and on behalf of Hospira. Hospira is investigating to determine the root cause.

On April 15, 2013, Mr. Matthew R. Stober was appointed Senior Vice President, Operations of Hospira Inc., effective immediately, and will join the company’s senior leadership team. Mr. Stober is succeeding Mr. John Elliot, the company’s previous Senior Vice President, Operations, who held the position from April 2012 to April 15, 2013. Mr. Elliot will provide transitional support throughout the remainder of 2013. Mr. Stober, age 45, served as the company’s Corporate Vice President, U.S. Pharmaceutical Operations from December 2011 to April 2013.