Amersham Pharmacia Biotech Unveiled

As expected, Amersham International announced that it has reached aconditional agreement with Pharmacia & Upjohn to merge its life sciences business with Pharmacia Biotech, P&U's biotechnology supply business (Marketletter June 9). Welcomed by investors, the move sent the firm's share price up to 10% to L14.82.

The new company, Amersham Pharmacia Biotech, will be the world's largest research-based biotechnology supplier, with combined sales of around L430 million ($700 million) and 3,600 employees worldwide. Its annual R&D spend will be around L40 million.

Amersham has the controlling stake with 55%, and P&U will hold the remaining 45%. Amersham and P&U will receive $61 million and $50 million respectively of preference shares. Amersham will contribute $89 million and P&U $52 million of debt to the combined entity.