Show 1 1 H 4 9 DRUG INDUSTRY UPDATE Over the past year or the stocks of most of the nation's leading phar- firms have made fine Just before those issues as a group were generally un- wanted in terms of Em- was then primarily on stocks negatives in the outlook for the phar- During the spring months of aided by the improved overall of the foremost drug firms made good from year-earlier Since that their prices have remained Important reasons for the better performance by the phar- The realization that most of the minuses in the outlook for the group had already been largely the continuation of the earnings growth by just about every leading drug and the in- of some promising newer products by selected pharmaceutical INDUSTRY Last nearly all of the major drug companies experienced marked earnings and more of the same seems likely for 1978 as a Although profit margins in the industry are not v. hat they used to they remain quite high compared with most other As for the longer growth prospects still appear to be Despite stringent government increasing foreign the relatively slow pace of new drug and the threat of higher Puerto Rican taxes which could affect several most domestic drug concerns should continue to operate very health demands of both the American public and people of other would seem to assure Despite the lengthy procedures and costs that are required to bring new drug products to sixteen new items received approval from the Food and Drug Administration last vear the most notable was an ulcer treatment that was marketed by As a result of this new the stock of has had a sharp run-up lit price this Earlier in Abbott Laboratories introduced two new items-an agent for favorable attention to the Abbott stock oX new Squibb with iv a few of nt In the an products are particularly if there is a shortening in the time span POSITION J the present the Research Department of Babson's Reports maintains a position on the many of which have been recommended for purchase by in- over the Those who are in representation in the industry at this time could consider buying cither American Home well-diversified producer of household products and food or Sterling Drug-an important issues have a fine growth potential and are listed on the New York Stock Ex- Up-to-date reports are available for either or both of there They may be obtained free of charge by writing to Wellesley Massachusetts |