SMITHKLINE &lt;SKB> AIMS FOR 10 PCT EARNINGS RAISE

  SmithKline Beckman Corp said it is
  pursuing a three-point stragey that will achieve a 10 pct
  annual increase in operating earnings throughout the remainder
  of the decade.
      In 1986, SmithKline earned 521.1 mln dlrs or 6.78 dlrs per
  share on revenues of 3.6 billion dlrs.
      The company said in its annual report that its
  nonpharmaceutical business will play a major role in meeting
  its earnings growth target, and will in fact grow faster than
  its pharmaceutical business.
      SmithKline, whose major product is the antiulcer medication
  Tagamet, said in the report that it intends to improve earnings
  from existing products, expand its product portfolio and
  optimize its financial resources.
      To bolster its position in the antiulcer market, in which
  Tagamet has met stiff competition, SmithKline said its strategy
  to develop an over-the-counter version of Tagamet is bolstered
  by two joint ventures, one with &lt;Wellcome PLC>, and one pending
  venture in Japan.
      SmithKline also said its Allergan Inc eye and skin care
  products division can be a one billion dlr organization in the
  next five years that can grow at more than seven to 10 pct
  annually.
      "Nondilutive acquisitions are a real possibility," Gavin
  Herbert, president of the eye and skin care product group said
  in the report. In 1986, Allergan had worldwide sales of 433 mln
  dlrs.
      It said its Smith Kline and French Laboratories
  pharmaceuticals unit, with 1986 sales of 1.9 billion dlrs, will
  file for Food and Drug Administration marketing approval for a
  number of cardiovascular agents, including tissue plasminogen
  activator, over the next two years.
      It also said SK and F's U.S. sales force will be 20 pct
  larger in 1987, with more than 1,000 sales personnel.
      Smith Kline also said its small clinical laboratory testing
  unit, with 1986 sales of 373 mln dlrs, performs 24 mln tests a
  year, and sees increases in employee drug testing as well as in
  testing for the AIDS antibody.
      Smith Kline said that depending on its share price and the
  cost of money, it may buy back more shares. In the last three
  years, it has bought back about 25 pct of its shares.
      SmithKline begins the year with a new management team,
  including its new chief operating officer George Ebright.
  

