[Imc] monsanto spun off for its "bad press"

[pfmueth at ux1.cso.uiuc.edu]

-- 
Anyone going to the Monsanto birthday party tomorrow should be 
advised that it won't be a thrill for the attendees. ..
this flemish ceo seemed almost apologetic last year . ..
wonder what they say this year .. .

From the guardian.co.uk
Drugs giant drops GM subsidiary

Mark Tran
Wednesday November 28, 2001

Pharmacia, the drugs giant, today announced plans to spin off 
Monsanto, its controversial bioengineering subsidiary, in the second 
half of 2002.

Pharmacia only completed its acquisition of Monsanto in March last 
year, largely to gain access to its drug unit G D Searle, which 
developed Celebrex, the best-selling arthritis drug.

Analysts say Monsanto's bioengineering business has dragged down 
Pharmacia's share price amid a growing backlash against genetically 
modified foods.

"These are two distinct businesses serving different markets and 
customers," said Pharmacia's chief executive, Fred Hassan.

He added that Pharmacia intends to focus on its core prescription 
drugs unit. The company currently owns about 85% of Monsanto.

Monsanto will face an uncertain future, having thrown in its lot with 
Pharmacia after coming under heavy pressure to split its drugs and 
agribusiness units or join forces with another company.

Allying itself with Pharmacia appeared to be the solution, but having 
obtained G D Searle, Pharmacia does not want to be saddled with a 
bioengineering company that is turning off investors.

Once an $8bn (£5.63bn) company, Monsanto was the most profitable life 
sciences corporation on the planet, with enough money to hire senior 
members of the former Clinton administration to smooth its way 
through Washington.

Monsanto thought its mastery of genetics would lead to new 
generations of crops, drugs, chemicals and industrial materials to 
suit the needs of the world's burgeoning population.

But growing consumer resistance to GM foods, particularly in Europe, 
has shattered Monsanto's grand illusions. A year ago, Monsanto 
publicly apologised for its arrogance.

Hendrik Verfaillie, Monsanto's chief executive, said then: "Even our 
friends told us we could be arrogant and insensitive. We were blinded 
by our enthusiasm. We missed the fact that this technology raises 
major issues for people - of ethics, of choice, of trust, even of 
democracy and globalisation."