HEALTH

Lilly to Divest Nine Subsidiaries: Eli Lilly & Co. said it will divest its medical devices and diagnostics operations to focus on its core pharmaceuticals business. Seven of the nine units are located in California. The final form of the divestiture has not been resolved, but the Indianapolis-based firm envisions forming a holding company for six of its medical device and diagnostic units, then spinning it off to shareholders in the next year through a public offering. Three remaining units will be sold separately. The move, along with a previously announced early-retirement program, will result in a $1.2-billion charge taken in the fourth quarter of 1993. Lilly will post a loss for the period, although earnings would have been about $4.50 a share without the charge, the company said in a statement. Drug industry analysts estimated Lilly could realize $2 billion from the spinoff.