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DPS GROSS MARGINS FROM CAPITATION BUSINESS WERE 22.5%

Executive Summary

DPS GROSS MARGINS FROM CAPITATION BUSINESS WERE 22.5% in 1993, according to information provided by SmithKline Beecham to its shareholders about SB's $2,3 bil, acquisition of Diversified Pharmaceutical Services, The May 20 letter to shareholders discloses that DPS capitation revenues of $79.4 mil. in 1993 were offset by $64.8 mil. in costs for the purchase of drug products used in the capitation programs. The company's gross profits from capitation were $14.6 mil. A capitation business was initiated by DPS in 1993.
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