After many consecutive years of double digit annual growth in its pharmaceuticals business, Akzo Nobel NV has warned that the next few years will be something entirely different for investors in the Dutch pharmaceuticals, chemicals and paints conglomerate. Most observers—and indeed Akzo Nobel itself—expected a slow-down in the pharma business; but the extent of the fall has nevertheless been spectacular. Management expects pharma sales to fall by at least 10% in 2003.
A conglomerate structure, so the argument goes, provides a buffer against the mood swings of the global economy; pharmaceuticals divisions...
