SmithKline could lose some Pentagon contracts.

A Defense Department spokesman said SmithKline Beckman could lose some of the contracts because of its guilty pleas last year to federal misdemeanors. John A. Goldsmith, spokesman for the Defense Logistics Agency, said the Philadelphia-based company has become the subject of "debarment" proceedings. A SmithKline spokesman said the company believes that debarment is not warranted since there were no charges or findings of intentional, reckless or negligent conduct. The company said it will vigorously oppose the proposed action. Last December, SmithKline admitted that it failed to make a timely report to the FDA on the lethal side effects of the anti-hypertension drug Selacryn.

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