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SmithKline 3Q jumps 27%
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October 31, 2000: 8:05 a.m. ET
Diabetic drug Avandia and antidepressant Paxil drive growth; Glaxo sales up 12%
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LONDON (CNNfn) - British drugs company SmithKline Beecham PLC, reporting its last independent results before merging with Glaxo Wellcome PLC, said profit jumped 27 percent on sales of new anti-diabetes drug Avandia and antidepressant Paxil.
Net income for the three months to Sept. 30 rose to £429 million ($621.4 million), or 7.3 pence a share, from £339 million, or 5.5 pence a share, a year ago. Revenue climbed 14 percent to £2.2 billion.
 "Sales were driven by continued growth from Seroxat/Paxil" and Avandia "led new product performance with worldwide sales of £115 million," Chief Executive Officer Jean-Pierre Garnier said in a statement.
Global sales of Paxil/Seroxat jumped 43 percent to £441 million while antibiotic Augmentin rose 21 percent to £283 million.
SmithKline and Glaxo announced plans to merge 9 months ago to create the world's second-largest drugmaker behind Pfizer Inc (PFE: Research, Estimates). The deal should have been completed last month but U.S. regulatory scrutiny has forced the companies to push back closure until the end of the year.
SmithKline, which has seen its stock rise 16 percent over the last year, fell 2.9 percent, or 27 pence to 912 in midday trade in London. Glaxo dropped 3.3 percent to 2,000 pence.
Merger partner Glaxo also published a nine-month business update showing sales up 12 percent on a year ago at £6.9 billion. Growth was driven by its key respiratory, central nervous system and anti-viral products. The company produced no earnings figures. 
-- from staff and wire reports
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SmithKline Beecham
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