Lilly Divests Hybritech To Beckman With Big Loss

Eli Lilly has achieved its goal announced in January 1994. It is selling Hybritech to Beckman Instruments as part of its plan to separate its medical devices and diagnostics businesses from its core pharmaceutical business. The deal between the two companies is expected to close at the beginning of January 1996. No financial details relating to the sale were given.

Lilly acquired Hybritech in 1986 (the deal was first announcd in the fall of 1985) for the sum of $300 million as part of its strategy to reposition itself in the health care industry by taking advantage of biotechnology techniques. Although not confirmed, sources close to the deal are reported to have said that the firms agreed a price for Hybritech of $10 million. Beckman is thought not to have been the only bidder for the firm.

Hybritech specializes in medical diagnostic equipment and the development of monoclonal antibodies, and Lilly planned to use Hybritech's expertise with monoclonal antibodies to re-enter the cancer therapeutic area.