Bristol-Myers Squibb Has "Best Combo Of Businesses"

US drugmaker Bristol-Myers Squibb has "the best combination of balanced businesses, existing and future product lines and strength in over-the-counter products, resulting in good earnings growth and secure, high dividends at compelling valuations," says Kenneth Nover of broker A G Edwards.

Assessing the group's 1994 performance, Mr Nover points out that while total sales growth was 5%, the pharmaceutical business increased 7% and contributed $7 billion (Marketletter January 30). Volume growth for the company's drugs was 6% and, importantly, the analyst notes, the antihypertensive Capoten (captopril), B-MS' largest product, after declining in 1993, had a good year, generating $1.5 billion turnover, up 4%.

Worldwide sales growth was also seen in newer drugs, he says, and Pravachol (pravastatin) - apparently not affected by Marion Merrell Dow's discounting of its competitive drug Lescol (fluvastatin) - produced sales 28% higher at $645 million. Monopril (fosinopril) turnover increased 38% to $165 million; Cefzil (cefprozil) was up 32% to $185 million; Taxol (paclitaxel; the largest grower) rose 127% at $340 million; and Buspar (buspirone) was 21% higher at $285 million.