Altana's shares rise 3% on news of the sale of its drugs unit to Nycomed for $5.7B

Shares in Germany's Altana AG reached a six-month high after the firm agreed to sell its pharmaceuticals unit to privately-held Danish drugmaker Nycomed for 4.5 billion euros ($5.7 billion).

The price is short of the 6.0 billion euros it had initially asked for, but the firm was forced to negotiate after many drug majors declined the offer because of uncertainties surrounding its patent expiry position and the potential of its development pipeline. But the market was relieved that it had finally secured a buyer and Altana's shares rose 3% to 45.97 euros in morning trading on September 22, the day the news was announced.

Altana had been looking for a "strategic partner" for its pharmaceuticals unit for the past year and a half. The Bad Homburg-based firm stated that it will remain listed and will focus on its remaining specialty chemicals business. Its shareholders will receive proceeds from the sale in 2007, in addition to the 2006 dividend. The Ordinary Annual General Meeting scheduled for May 3, 2007, will take the decision on the distribution of the net proceeds and the dividend after approval of the company's financial statements for 2006.