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PHARMACEUTICALS

From Times Staff and Wire Reports

Glaxo Considering Lilly Stake: The British pharmaceuticals company Glaxo Holdings is considering buying a $1-billion stake in the Eli Lilly & Co. PCS Health Systems Inc. drug distribution unit, the Sunday Times of London reported. Indianapolis-based Lilly is the sixth-largest U.S. pharmaceutical company by sales, and it needs to cut the $2.5-billion debt it is taking on to pay for its $4.2-billion purchase of PCS from McKesson Corp. Peter Lang, a pharmaceutical analyst at Salomon Brothers, is quoted as saying a Glaxo stake in PCS is “a plausible outcome.” Lilly shares have climbed more than 14% to $57.25 in the past two weeks amid speculation that Glaxo may be poised to make an unsolicited bid for the entire company, which analysts value at about $15 billion.


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