Pharmaceutical Resources ( PRX) will restate results back to 1998 after the SEC advised it to change its accounting for a stock-sale and distribution agreement. The restatement relates to a March 1998 agreement with Merck KgaA in which it sold the German firm 10.4 million shares and entered a product distribution pact. The SEC said the deal should have been booked as a single transaction instead of two separate ones. The company plans to value the distribution agreement at $29 million and record it as a balance sheet asset that it will amortize over 15 to 20 years, retroactive to 1998. In addition, Pharmaceutical Resources raised its third-quarter revenue and earnings to reflect reduction of an accrual for anticipated inventory price reductions.