£250m wiped off sluggish Amersham

NEARLY £250m was wiped off Amersham after the blue-chip healthcare group disappointed investors with sluggish sales. The firm blamed a weak Japanese market and cautious spending in the drugs sector, which had weighed on its first-quarter performance.

Sales rose 5% in the first three months but the City is looking for at least 10% for the full year. Chief executive William Castell said Amersham had enjoyed 'good growth' over the first quarter. He added his outlook for 2002 was unchanged as he was confident sales would increase, particularly in the second half.

But the Footsie-listed shares fell 35p to 643p - on course for their lowest close since January. Max Herrmann, pharmaceutical analyst at ING Charterhouse, said: 'We were expecting the company to achieve full-year sales growth of 13%. They have come in well below that so it could be hard to achieve.'

Amersham is split into two divisions, Health, which makes products to help diagnose disease, and Biosciences, which sells drug discovery systems.

The Buckinghamshire-based company said sales in Amersham Health were up 4% on a constant exchange rate basis to £223m. Biosciences rose 6% as some clients in the pharmaceutical sector tightened their belts. Amersham said sales of its drug discovery systems were weighted towards the latter part of the year, adding Biosciences had a 'strong order book'. Sales of its diagnostic products, used to help trace heart disease and cancer, were also expected to be higher over the rest of the year.