No need to be sad

21 October 2003 By Robert Cyran Follow @rob_cyran

The Dutch conglomerate s profitability is under pressure because of growing generic competition to its main drug. But Pfizer s drugmaking tieup with Akzo, and the company s willingness to dispose of some chemicals assets, mean sunnier days lie ahead.

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Akzo Nobel announced a partnership with Pfizer for the development and sale of a potential antipsychotic drug. The Dutch conglomerate will receive $100m immediately and up to $270m in milestone payments.

The deal comes at a welcome time for Akzo. Results announced on October 17th showed that sales for the first three quarters fell 13%. The company believes profits for 2003 will be 20% lower, due to the strong dollar and the introduction of generic versions of the company's bestselling antidepressant.

To compensate for the loss in cash flow, the company has entered negotiations to sell off three parts of its chemicals division.

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