Solid 2nd Qtr Earnings Growth For US Drugmakers

US pharmaceutical firms due to start reporting second quarter 1995 results this month should put in a solid composite earnings performance, but there will be significant variations between companies, say analysts Jami Rubin and Glenn Novarro of Wertheim Schroder. Composite earnings, they suggest, will see growth in the 7%-8% range.

Several factors are expected to contribute to this, ie: an easy year-over-year comparison (second-quarter 1994 growth was an anemic 3%); a weak US dollar; moderations in sales, general and admin spending; and strong demand across the board for newer products. The analysts note in particular demand for Schering-Plough's Claritin (loratadine), Pfizer's Norvasc (amlodipine), Zithromax (azithromycin) and Zoloft (sertraline) and Bristol-Myers Squibb's Taxol (paclitaxel), Glucophage (metformin) and Serzone (nefazodone).

Top Line Growth From Acquisitions Top-line growth, boosted by major acquisitions, should be around 15% in the second quarter, compared with 20% in the like, year-earlier quarter. The analysts say that excluding acquisitions, they are looking for adjusted sales growth in the high single digits derived from approximately two-three percentage points of currency and five-seven percentage points of unit volume.