...And Israel's Teva Recommended

Purchase of shares in Israel's generics company Teva Pharmaceutical is being recommended by analysts at US broker A G Edwards & Sons. Their recommendation is based on an attractive valuation in relation to the company's growth prospects.

The analysts expect Teva to produce earnings growth of 21% over the next three years. The company has 21 Abbreviated New Drug Applications pending with the US Food and Drug Administration, note the analysts, which indicates that its generic drugs business should continue to prosper. They also say that with the integration of the company's bulk pharmaceutical division complementing the generic division, and earnings from sales to other companies, Teva's margins should remain relatively secure.

The company's primary strengths are its performance and integration of the generics business, and its research and development operations. Pharmaceutical operations at Teva represent around 71% of 1993 total sales, with sales of generic pharmaceuticals making up the main part of pharmaceutical sales.