PHARMACEUTICAL giant Glaxo has unveiled healthy final figures before its proposed merger with SmithKline Beecham.

Sales for the nine months to September 30 were £6.86bn compared to £6.10bn at the same time last year - representing growth of around 11 per cent.

Its sales in the key drug areas of respiratory, anti-viral and the central nervous system continued to grow strongly, helped by the contribution from new products.

Glaxo chairman Sir Richard Sykes said: "These results show that Glaxo Wellcome is continuing to generate very good sales growth particularly in the US market where all key therapy areas performed well.

"Glaxo Wellcome and SmithKline Beecham have made significant progress in planning the integration of our two businesses and continue anticipate completion of the merger by the end of 2000.

"This strong performance gives us great confidence about the prospects for the combined company GlaxoSmithKline."

The proposed merger between the two pharmaceutical giants has hit a number of snags over recent months, after US regulatory authorities demanded more information on the deal.

The two firms had hoped to start trading as GlaxoSmithKline on September 25 but admitted recently that completion of the merger would now only occur at the end of the year.

Glaxo, which employs more than 1,600 people at its site in Barnard Castle, and SmithKline have ironed out the most substantial issues regarding the merger but continued US Federal Commission (FTC) concern centres on the merged company's perceived domination of the US anti-smoking market.

The FTC have asked for more information about anti-smoking products being developed by the two firms - including Glaxo's Zyban product and SmithKline's Nicorette and Nicoderm products.

The £100bn plus deal was first brokered by the two companies in January this year and approval for the deal from the European Commission came in May