In the Region

FTC approves Merck-Schering-Plough deal

Merck & Co. Inc. yesterday won Federal Trade Commission approval to buy rival Schering-Plough Corp. after agreeing to sell its stake in the Merial Ltd. animal-health business and in the nausea drug rolapitant. Merck must divest those assets for antitrust reasons, the FTC said. Merck already agreed to sell its 50 percent share in the Merial joint venture to Sanofi-Aventis. It will sell rolapitant-related assets to Opko Health Inc., Miami, the FTC said. Merck, Whitehouse Station, N.J., has major operations in Montgomery County. In March, it agreed to buy Schering-Plough, Kenilworth, N.J., in a deal worth $41 billion. Also yesterday, Merck said it received approval from Canadian and Swiss regulators. The companies are still awaiting approval from other countries, including China and Mexico. - Miriam Hill

Blue Cross chief operating officer to retire

Christopher D. Butler, Independence Blue Cross' chief operating officer and executive vice president, will retire July 1, the company said. He will be replaced by Daniel J. Hilferty, who will become president of health markets, and chief medical officer I. Steven Udvarhelyi, who will become executive vice president for health services. Butler will step down as chief operating officer Jan. 1, but he will continue as executive vice president until July to smooth the transition, the company said. - Jane M. Von Bergen

FMC's third-quarter profit falls 65 percent

FMC Corp. said yesterday that its third-quarter profit fell 65 percent as the economic slump reduced demand for the Philadelphia chemical company's products. FMC earned $28 million, or 38 cents a share, in the quarter that ended Sept. 30. That is down from the $80 million, or $1.05 a share, it earned a year earlier. The company said restructuring and other onetime costs amounted to $37.3 million during the quarter. Adjusted profit of 89 cents a share fell a penny short of the 90-cent-a-share prediction of analysts polled by Thomson Reuters. Revenue fell 13 percent, to $713.3 million from $820.8 million, also coming in below analysts' $775.1 million average estimate. - AP

Profit sharply higher for Universal Health Services

Universal Health Services Inc., the King of Prussia hospital company, reported that its third-quarter net income was up 41 percent over a year earlier. The company increased its full-year guidance to $4.65 to $4.80 a share from the previous range of $4.40 to $4.55 a share. Third-quarter net income was $51.1 million, or $1.03 a share, this year compared with $37 million, or 73 cents a share, in 2008. Chief financial officer Steve Filton said the company had succeeded in controlling expenses in a "disinflationary environment." - Stacey Burling

Endo profit falls on Indevus buyout

Chadds Ford drug developer Endo Pharmaceuticals Holdings Inc. said its third-quarter profit plunged on charges mainly related to the buyout of Indevus Pharmaceuticals Inc. Net income dropped 25 percent, to $49.4 million, or 42 cents a share, from $66 million, or 55 cents a share, a year earlier. Revenue rose 14 percent, to $361 million from $316.8 million. Excluding charges mainly related to Indevus, the company earned 63 cents a share in the latest quarter. In February, the company paid $370 million for Indevus. Analysts polled by Thomson Reuters expected profit of 64 cents a share on revenue of $365.3 million. - AP

Airgas Q2 profit off 25 percent as sales fall

Airgas Inc. said its second-quarter net income fell 25 percent as sales of industrial, medical, and specialty gases declined and the Radnor company's profit margin tightened. For the three months ended Sept. 30, net income fell to $54.5 million, or 65 cents a share, from $72.8 million, or 86 cents a share, a year earlier. Excluding charges related to pension and debt extinguishment, Airgas earned 68 cents a share, a penny better than analysts expected, according to a Thomson Reuters survey. Sales declined 17 percent to $962.3 million, while analysts had expected $999.2 million. Meanwhile, sales at stores open at least one year fell 19 percent. - AP

Resource America real estate unit invests $110M

Resource America Inc.'s unit that specializes in real estate has invested $110 million for institutional and other clients in distressed real estate deals since late 2007, when it began looking for new deals. Resource Real Estate Inc. managed a total of $1.7 billion as of June 30. "The dislocations in the current real estate and credit markets, combined with the frothy lending climate of the last few years, suggest that we are in the early phase of commercial real estate distress and we expect to capitalize on it," Resource Real Estate's chief executive officer Alan Feldman said in a news release. Resource America is a Philadelphia specialized-asset manager. - Harold Brubaker

Judicial panel: Countrywide lawsuit can proceed

A decision yesterday by a three-judge panel of the U.S. Court of Appeals for the Third Circuit in Philadelphia allows lawyers for a group of homeowners nationwide to continue a class-action suit against Countrywide Mortgage Corp. and its affiliated reinsurer. The suit alleges violation of the antikickback provision of the Real Estate Settlement and Procedures Act. The action reversed an early one granting Countrywide's motion to dismiss the suit. - Alan J. Heavens

Harrisburg, Phila. banks extend merger deadline

Metro Bancorp Inc., Harrisburg, and Republic First Bancorp Inc., Philadelphia, said they extended the contractual deadline for their merger until Dec. 31 to allow additional time for regulatory approvals. Shareholders of the two companies with combined assets of more than $3 billion approved the deal in March. - Harold Brubaker

Elsewhere

Aetna's profit up 18 percent; costs also rise

Aetna Inc. said its third-quarter profit rose 18 percent on enrollment gains, but spiraling medical costs continued to hurt its core insurance business. Aetna has operations in Blue Bell. Overall, the managed-care company said it earned $326.2 million, or 73 cents a share, up from $277.3 million, or 58 cents a share, a year earlier. Revenue grew 9 percent, to $8.7 billion from $7.98 billion. Operating earnings, which exclude capital gains and other items, fell to $308.2 million, or 69 cents a share. - AP