AHP Restructures Ailing Agricultural Unit

American Home Products Corp., the drug maker that’s facing thousands of lawsuits over its once-popular diet pills, is restructuring its struggling agricultural chemicals business as it loses sales to rival Monsanto Co. The move will cut 700 jobs, or 13% of the agricultural unit’s work force, and close four sales offices in the Midwest and South. AHP said it is still evaluating “strategic alternatives” for the agricultural unit. The Madison, N.J.-based company might be nearing a $4.4-billion settlement on some claims arising out of the fen-phen diet pills, and some investors expect the company to sell or spin off the agricultural business afterward. AHP said it will take a third-quarter charge of $219.9 million, or 17 cents a share, for costs associated with the restructuring, which also includes buying back its soybean herbicides from dealers as it prepares to launch a new product this fall. AHP said it is reducing its inventory primarily to make way for a new herbicide that would compete head-on with Monsanto’s popular Roundup. American Home shares rose $1.88 to close at $45.13 on the NYSE.