FISONS DIVESTS TO FOCUS ON PHARMACEUTICALS

UK pharmaceutical, horticultural and scientific instruments concern, Fisons, has announced that it is to sell off its horticultural and consumer health businesses as part of a reorganization of the group. The decision was taken by the recently-appointed chief executive Cedric Scroggs (Marketletter April 6), in an attempt to revitalize the company which presently has two pharmaceutical products banned by the US Food and Drug Administration, Opticrom (disodium cromoglycate) a hayfever treatment, and the iron dextran product Imferon (Marketletters passim).

In 1991, the horticulture division made profits of L 11.5 million ($20.4 million) and sales of L 96.7 million, and the consumer health business made worldwide sales last year of L 84 million, and operating profits of L 10 million. Sales and profits for the group as a whole were L 1.2 billion, and L 200.7 million, respectively.

Fisons chairman Peter Egan said: "both are excellent businesses, earning good returns for Fisons. However, the new management has taken a fresh look at the strategic direction of the group, and decided to concentrate resources on the two core activities, pharmaceuticals and scientific equipment. Both these divisions offer the prospect of continued above-average growth in the years to come."