Amadeusz Juskowiak

Ici ici seeks gains in specialty businesses

Imperial Chemical Industries PLC the largest chemical company in the United Kingdom will expand its specialty chemicals and drug businesses this year and better its 1986 results said chairmanelect Denys Henderson

We expect to shift our company toward higher valueadded businesses and continue to broaden our base Henderson told reporters at an informal meeting here

ICI today announced the formation of a new US drug company ICI Pharma which with its Stuart Pharmaceuticals unit it said will double its current pharmaceutical sales to 11 billion dlrs by 1990

Henderson said Our pharmaceutical business gets lost in the way that Glaxos Glaxo Holdings PLC does not

ICIs pharmaceutical division is the second largest drug maker behind Glaxo in the UK Last year US drug sales were about 40 pct of its worldwide drug sales of 15 billion dlrs which in turn brought in 27 pct of its total profits

He estimated that by 1990 ICIs pharmaceutical division would account for about 30 pct of total company profits

The drug division far and away brings in the highest rate of return said AW Clements finance director of ICI who was also at the meeting

Henderson said the new US drug concern would basically act as a second sales force to double the exposure of its drugs to doctors ICI will hire 145 new salespeople by October one

Henderson said the major new products in the companys pipeline expected to each bring in sales of over 200 mln dlrs annually were Statil a treatment for diabetic complications Zoladex a treatment for advanced prostate cancer and Carwin a treatment for mild to moderate congestive heart failure

Henderson said US Food and Drug Administration approval to market Statil and Zoladex both under joint licensing agreements with Merck and Co Inc MRK is not expected until about 1989 ICI expects to file for permission to market Carwin in the US later this year

Henderson said the companys 1987 results would top 1986 income of 888 mln dlrs or 545 dlrs per ADR on sales of 15 billion dlrs but he declined to specify by how much

Henderson said 1987s results would be boosted by Glidden Paints which ICI bought last November for 580 mln dlrs from a unit of Hanson Industries Inc

Henderson also said that ICI has about nine billion dlrs available for acquisitions Last year the company made 40 acquisitions the largest being Glidden He said that more acquisitions may be made this year but he ruled out an acquisition of a pharmaceutical concern as too expensive

Henderson said that in his new role of chairman effective April one when he takes over from Sir John HarveyJones who will retire the biggest challenge ahead lay in continuing the earnings momentum ICI has established over the past few years after restructuring and selling off unprofitable businesses

Reuter