DuPont sells its pharmaceutical operations to Bristol-Myers Squibb

DuPont has made its expected exit from the pharmaceutical market by selling its wholly-owned pharma subsidiary to Bristol-Myers Squibb.

BMS is paying US$7.8bn (€6.7bn) in cash for the business. DuPont is to retain its interest in the antihypertensive losartan (Cozaar/Hyzaar), which was co-developed with, and marketed by, Merck.

Richard Lane, president of BMS' worldwide medicines group and executive vp, will oversee the integration of the two companies.

Last year, DuPont Pharmaceuticals had sales of US$1.5bn (€1.3bn). Its key products include the non-nucleoside reverse transcriptase inhibitor efavirenz (Sustiva), the anticoagulant Coumadin, and the cardiovascular radiopharmaceutical Cardiolite. Its pipeline includes an oral blood coagulation inhibitor for deep vein thrombosis, and a novel agent for treating depression and anxiety. Other promising compounds include a selective oestrogen modulator for treating breast cancer, novel agents affecting cellular processes associated with inflammatory diseases, and a selective receptor modulator for the treatment of obesity.

DuPont says it plans to use a portion of the proceeds of the sale to complete the ongoing £2.5bn (€2.2bn) share buyback programme. The remainder is expected partly to be used to reduce net debt, and partly to be invested in the company's ongoing strategic business.

'The action we have taken… will build superior value for our shareholders as we fund investment in growth-oriented opportunities and quicken the pace of our share buyback programmes,' said DuPont's chairman and ceo Charles Holliday.

BMS has also announced it is to sell its Clairol beauty care business to Procter & Gamble, and the spin off its Zimmer orthopaedic implants business later this year.