Pharmacia to Divest Stake in Monsanto

Pharmacia Corp. said it will spin off its under-performing agricultural unit, Monsanto Co., and warned that sales growth for its blockbuster arthritis drug Celebrex might skid more than Wall Street had feared.

Celebrex, an arthritis and pain drug launched in 1999, has been Pharmacia’s growth driver over the last few years, with sales jumping 78% to $2.61 billion in 2000.

But that impressive rate could slow to only 15% this year, bringing sales beyond the $3-billion mark, the company said.

Pharmacia said it will divest its 85% stake in under-performing Monsanto via a tax-free dividend to Pharmacia shareholders by the second half of 2002.

Pharmacia shares fell $2.56, or 5.5%, to close at $43.95 on the NYSE.