Company News; Lilly to Sell or Spin Off Most Non-Drug Lines
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Moving to strengthen profits and competitiveness in a difficult period for drug makers, Eli Lilly & Company announced plans yesterday to leave all but its core pharmaceutical and animal health businesses. Lilly, based in Indianapolis, said it planned to sell or spin off nine medical-device and diagnostic units with about $1.2 billion in 1993 sales, or 18.7 percent of the company’s total sales of $6.4 billion. It also announced that it would take restructuring and other pretax charges of $1.2 billion in the quarter that ended on Dec. 31. The charges include $540 million for previously announced early retirements accepted by 2,600 employees, $370 million to close or scale back factories and reorganize distribution, and $290 million for other expenses that the company did not fully explain. Investors welcomed the moves, which many financial analysts had recommended. Lilly shares rose $1.625, to a 12-month high of $61.50 on the New York Stock Exchange. “We are making Lilly more competitive,” said Randall L. Tobias, a former A.T.& T. vice chairman who became Lilly’s chairman in June. More Open Markets More : query.nytimes.com |