Smithkline Beecham

SmithKline Beecham PLC reported today that its profits for 1989 declined 65% over a year ago due largely to heavy costs associated with the recent merger that created the world's second-largest pharmaceuticals company. The company said its net profit totaled $209 million, compared with $591 million in 1988. Sales, however, rose 14% to $7.9 billion from $6.9 billion. The full-year results were the first for the company since its merger in July, 1989.

A week after restricting a major drug industry merger, the Federal Trade Commission is examining another--SmithKline Beecham's purchase of Diversified Pharmaceutical Services Inc. London-based SmithKline Beecham said Monday that it was not surprised by the FTC's notice, but it added that it worked closely with the agency before finalizing its $2.3-billion deal last May. Diversified, of Bloomington, Minn., manages prescription drug benefits for 11 million people in the United States.

SmithKline Beckman Corp. said its shareholders today approved the company's merger with Beecham Group PLC., creating the world's second largest pharmaceuticals group. SmithKline said the stock-swap merger took effect in the morning after regulatory filings in Pennsylvania and London. SmithKline said the merger was approved by about 99% of the shares voted at today's special meeting. Beecham stockholders previously approved the deal, worth about $7.7 billion. SmithKline's stock was up 62.