Work Cut Out For New Team At Fisons

The new management team at Fisons of the UK has its work cut out to improve profitability, according to analysts at Goldman Sachs. They have reduced their forecast for underlying pretax profits in 1994 from L60 million ($94.2 million) to L50 million.

The scientific instruments division is still weighing heavily on the group's performance, and some adverse effects on the pharmaceutical division have also had an impact. Sales in the USA of antiasthmatic aerosol Intal (sodium cromoglycate) have fallen despite no generic competition, which the analysts suggest could mean a L5 million to L6 million impact on profits. Sales of the nebulized version of the product are declining due to generic competition as expected.

A spokesperson at Fisons told the Marketletter last week that it is still in negotiations to dispose of one third of the scientific instruments division and that a number of people are interested. Fisons' strategic review, which was initiated last year by Stuart Wallis, the company's new chief executive, is still ongoing. The spokesperson said that an announcement concerning the review would be forthcoming either just before or at the time of the full-year results conference, which is expected to be in early March.