ICU Medical Extends Two Distribution Pacts With Hospira

ICU Medical, Inc. (ICUI) extended two primary distribution agreements with Hospira Inc. (HSP) through the end of 2018.

ICU Medical manufactures custom infusion sets for Hospira, which the two medical-products companies jointly promote under the brand SetSource, under one of the agreements.

Hospira purchases ICU Medical's core Clave products -- which prevent accidental pricks from intravenous needles -- and oncology products under the other agreement. Hospira maintains rights to distribute ICU Medical products globally that previously had been extended to 2014.

Financial terms of the pacts weren't disclosed.

ICU Medical in October reported that third-quarter earnings rose 3.2% on a lower tax provision though its sales growth slowed and its operating expenses rose 15%.

Hospira, which spun off from Abbott Laboratories (ABT) in 2004, in October reported that it swung to third-quarter loss and raised cost estimates associated with fixing a drug manufacturing plant after a production slowdown there weighed down earnings.

ICU Medical shares were up 38 cents at $45.33 in recent trading. Hospira was up 3.2% at $30.22.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]