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7-Business: Monsanto stock slips on Pharmacia-Pfizer deal

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                                  PART I
-------------------------------- GENET-news --------------------------------

TITLE:  Pharmacia Confirms Guidance for Second Quarter and Full Year,
        Updates Monsanto Spin-off Plan
SOURCE: Pharmacia
DATE:   July 15, 2002

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Pharmacia Confirms Guidance for Second Quarter and Full Year, Updates 
Monsanto Spin-off Plan

PEAPACK, NJ (July 15, 2002) – Pharmacia Corporation today announced that it 
is comfortable with consensus earnings estimates for its pharmaceutical 
business, as adjusted, of 39 cents per share for the second quarter of 
2002. The company also confirmed its full year earnings guidance of $1.52-
$1.57 per share.

The company cited solid growth trends in its flagship COX-2 inhibitor 
franchise led by Celebrex (celecoxib capsules), the world’s number one 
branded treatment for arthritis along with double digit sales increases 
among several other growth drivers in its product portfolio.

Pharmacia also announced that it intends to complete the spin-off of its 
Monsanto agricultural subsidiary as soon as practicable this year. Under 
the plan, first announced in November 2001, Pharmacia will distribute its 
entire ownership of Monsanto stock to Pharmacia shareholders by means of a 
tax-free dividend.

Pharmacia Corporation is a top-tier global pharmaceutical company with a 
leading agricultural subsidiary. Pharmacia's innovative medicines and other 
products save lives and enhance health and wellness. Pharmacia's 59,000 
people work together with many diverse stakeholders to bring these benefits 
to people around the world, and to create new health solutions for the 

Media Contact Paul Fitzhenry Pharmacia Corporation Phone: +1-908-901-8770
Analyst Contact Linda C. Heller Phone: +1-908-901-8853

                                  PART II
-------------------------------- GENET-news --------------------------------

TITLE:  Monsanto stock slips on Pharmacia-Pfizer deal
SOURCE: Reuters, by Carey Gillam
DATE:   July 15, 2002

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Monsanto stock slips on Pharmacia-Pfizer deal

KANSAS CITY, Mo., July 15 (Reuters) - Shares of biotech agricultural 
company Monsanto Co. fell to a 52-week low on Monday before recovering 
after its parent, drugmaker Pharmacia Corp., agreed to be acquired by 
industry leader Pfizer Inc..

Some industry analysts speculated that Pharmacia may be pressured to move 
up its planned spin-off of Monsanto, giving it less time to reestablish 
market confidence in its earnings after recent profitability problems.

Pfizer, the world's largest drugmaker, said it had agreed to buy its U.S. 
rival Pharmacia for about $51 billion in stock, representing about a 20 
percent premium for Pharmacia shares.

Pfizer's plan to complete the Pharmacia acquisition by year's end could 
speed up the spinoff of Monsanto shares, which was originally slated to 
happen in the fourth quarter of this year. Pfizer has said the mega-merger 
is contingent on Monsanto shares already being spun off.

Pharmacia said Monday it would spin off Monsanto "as soon as practicable 
this year," and it would not comment further.

Stock in St. Louis-based Monsanto was already under pressure prior to the 
Pfizer deal on anticipation of the spinoff, which is to be handled as a tax-
free dividend of Monsanto shares to Pharmacia shareholders.

Market observers had speculated that Pharmacia shareholders could be quick 
to dispose of Monsanto stock following the spinoff. Now with Pharmacia 
moving to shed Monsanto before the Pfizer deal closes, there is less time 
for Monsanto to restablish confidence in its earnings after a recent profit 

"Now it could be viewed more as a fire sale... to get it done quickly at 
any price," said Buckingham analyst John Roberts.

Monsanto's stock sank more than 12 percent in early trading on Monday 
before closing off 58 cents, or more than 3 percent, at $16.99 on the New 
York Stock Exchange. In early trading on Monday, the stock hit a 52-week 
low of $15.30.

Monsanto Chief Operating Officer Hugh Grant said Monday that he had no 
information about a change in timing of the spinoff.

"I don't have a date," Grant said. "We've been preparing for the spinoff. 
We're getting ourselves organized here and we'd be ready to go."

Monsanto, which in June sharply cut its earnings outlook through 2003, has 
been beleaguered of late by troubles in Latin America, increasing 
competition for its top-selling Roundup herbicide product, and problems 
gaining global acceptance of its genetically modified seed technology.

Monsanto has been evolving from a company largely dependent on its crop 
productivity products to one driven by seeds and genomics technology.

Analysts said Monsanto was seen as a leader in its key business lines, and 
pricing action Monday was at least in part tied more to arbitrage than 
concerns about Monsanto, which produces herbicides, seeds and other 
agricultural products.

Monsanto is the "preeminent bioag company in the world," said Deutsche Bank 
analyst John Moten. The stock drop, he said, was much more "going long on 
Pharmacia and short on Monsanto."

Grant said the blockbuster merger of the drug companies would have little 
impact on the fundamentals of the biotech agricultural concern.

"In terms of how we run the business, I don't think it changes much," Grant 
said. "Pharmacia has been very, very good. We've reported in to the 
management structure there. They've said deliver on certain milestones and 
targets, but other than that they've pretty much let us run our own 

Pharmacia, which was then Pharmacia & Upjohn, merged with St. Louis-based 
Monsanto in April 2000. The drug company sold off 15 percent of Monsanto in 
a public offering in October 2000 and had planned to spin off the rest in 
the fourth quarter of this year.

Pharmacia obtained the wildly successful Cox-2 inhibitor Celebrex drug 
through its purchase of Monsanto. The treatment for osteoarthritis and 
rheumatoid arthritis has been a key revenue driver for Pharmacia and is 
seen as one of the jewels driving the premium Pfizer is willing to pay for 


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