Pharmacia Corp selling stake in Amersham Biosciences for $1 billion

Pharmacia Corp says that it has reached an agreement in principle tosell its minority 45% interest in Amersham Biosciences to its UK-based partner Amersham for L704 million ($1 billion). The latter company holds a 55% stake in the joint venture, which was formed in 1997 as Amersham Pharmacia Biotech.

Fred Hassan, Pharmacia's chief executive, said Amersham Biosciences "is an excellent business, but it is outside of our core pharmaceutical focus and selling our interest is consistent with our strategic direction.'' In connection with the transaction, Pharmacia will record a large, one-time gain in the first quarter of 2002 but, excluding this, the agreement will not have a material impact on its financials this year and it is maintaining its previous earnings guidance for 2002 of $1.52-$1.57 per share.

Simplified structure will increase flexibility