Pharmaceutical company Hospira has awarded Citi's global transaction services team its primary cash and liquidity management mandate in seven Asia-Pacific markets.
Under the mandate, global pharmaceutical and medical delivery company Hospira will use Citi's single window, known as CitiDirect, as well as other cash solutions in Australia, Hong Kong, Malaysia, New Zealand, the Philippines, Singapore and Taiwan.
"We are currently working on several cash management initiatives in Asia-Pacific and we are extremely pleased to partner with Citi to achieve our objectives of standardisation and consistency in this region," says Hospira Asia-Pacific area treasurer Todd Williams.
Citi's global transaction services operates in 18 Asia-Pacific markets. A presence the bank has leveraged to win other multi-market cash mandates including those from US-based SPX Corporation in January and Netherlands-based NXP Semiconductors in March 2008.
"By winning Hospira's cash management business, Citi continues to display unmatched leadership in providing cash management solutions to the world's largest pharmaceutical firms," says Citi managing director and regional head of treasury and trade solutions sales in Asia-Pacific and Japan Ivo Distelbrink. The bank's other pharmaceutical cash clients in the region include Switzerland's Roche and the US's Bristol-Myers Squibb.
A supplier of specialty pharmaceutical delivery products, especially injectable medications, Hospira operates in 20 Asian markets from a regional headquarters in Australia. The company posted a 10.4% year-on-year rise in net sales to $925.5 million in the third quarter of 2008. Over the same period, net sales in Asia grew 23% to $73.2 million, faster than other regions - though, Asia-Pacific only constitutes 7.9% of Hospira's total sales.
Citi global transaction services reported a 4% rise in revenue for the fourth quarter of 2008. The rise was driven by North America where revenue grew 26%, while in Asia revenue fell 8%. The bank cited an increase in customer deposits and new mandate wins for the increase in revenue.
