American Home to Reduce Stake in Immunex

Immunex Inc. said American Home Products Corp. plans to reduce its 55% ownership in the biotechnology company by selling as much as $2.7 billion of Immunex stock. The news sent shares in Immunex down $6.56 to $46.88 in after-hours trading. The shares had closed up $1.88 at $53.44 on Nasdaq. American Home, which makes the No. 1 prescribed drug in the U.S., hormone replacement Premarin, will sell as many as 50 million Immunex common shares, according to a filing with the Securities and Exchange Commission. Immunex also plans to sell as many as 20 million newly issued shares of its own stock, which would raise as much as $1.1 billion at most recent market prices. Seattle-based Immunex would get funds to expand production of its Enbrel, a rheumatoid arthritis drug it is seeking to market for other uses. Raising cash to settle the so-called fen-phen litigation is just one possible explanation for Madison, N.J.-based American Home’s reducing its Immunex stake, said Steven Gerber, a Los Angeles-based analyst at CIBC World Market. American Home shares closed down $2.25 at $55.88 on the New York Stock Exchange.