1 Earnings for most of the nation's major pharmaceutical makers are believed to have moved ahead briskly in the third quarter, as companies with newer, big-selling prescription drugs fared especially well.
2 For the third consecutive quarter, however, most of the companies' revenues were battered by adverse foreign-currency translations as a result of the strong dollar abroad.
3 Analysts said that Merck & Co., Eli Lilly & Co., Warner-Lambert Co. and the Squibb Corp. unit of Bristol-Myers Squibb Co. all benefited from strong sales of relatively new, higher-priced medicines that provide wide profit margins.
4 Less robust earnings at Pfizer Inc. and Upjohn Co. were attributed to those companies' older products, many of which face stiffening competition from generic drugs and other medicines.
5 Joseph Riccardo, an analyst with Bear, Stearns & Co., said that over the past few years most drug makers have shed their slow-growing businesses and instituted other cost savings, such as consolidating manufacturing plants and administrative staffs.
6 As a result, 'major new products are having significant impact, even on a company with very large revenues,' Mr. Riccardo said.
7 Analysts said profit for the dozen or so big drug makers, as a group, is estimated to have climbed between 11% and 14%.
8 While that's not spectacular, Neil Sweig, an analyst with Prudential Bache, said that the rate of growth will 'look especially good as compared to other companies if the economy turns downward.'
9 Mr. Sweig estimated that Merck's profit for the quarter rose by about 22%, propelled by sales of its line-up of fast-growing prescription drugs, including its anti-cholesterol drug, Mevacor; a high blood pressure medicine, Vasotec; Primaxin, an antibiotic, and Pepcid, an anti-ulcer medication.
10 Profit climbed even though Merck's sales were reduced by 'one to three percentage points' as a result of the strong dollar, Mr. Sweig said.
11 In the third quarter of 1988, Merck earned $311.8 million, or 79 cents a share.
12 In Rahway, N.J., a Merck spokesman said the company doesn't make earnings projections.
13 Mr. Sweig said he estimated that Lilly's earnings for the quarter jumped about 20%, largely because of the performance of its new anti-depressant Prozac.
14 The drug, introduced last year, is expected to generate sales of about $300 million this year. 'It's turning out to be a real blockbuster,' Mr. Sweig said.
15 In last year's third quarter, Lilly earned $171.4 million, or $1.20 a share.
16 In Indianapolis, Lilly declined comment.
17 Several analysts said they expected Warner-Lambert's profit also to increase by more than 20% from $87.7 million, or $1.25 a share, it reported in the like period last year.
18 The company is praised by analysts for sharply lowering its costs in recent years and shedding numerous companies with low profit margins.
19 The company's lean operation, analysts said, allowed sharp-rising sales from its cholesterol drug, Lopid, to power earnings growth.
20 Lopid sales are expected to be about $300 million this year, up from $190 million in 1988.
21 In Morris Plains, N.J., a spokesman for the company said the analysts' projections are 'in the ballpark.'
22 Squibb's profit, estimated by analysts to be about 18% above the $123 million, or $1.25 a share, it earned in the third quarter of 1988, was the result of especially strong sales of its Capoten drug for treating high blood pressure and other heart disease.
23 The company was officially merged with Bristol-Myers Co. earlier this month.
24 Bristol-Myers declined to comment.
25 Mr. Riccardo of Bear Stearns said that Schering-Plough Corp. 's expected profit rise of about 18% to 20%, and Bristol-Meyers's expected profit increase of about 13% are largely because 'those companies are really managed well.' ScheringPlough earned $94.4 million, or 84 cents a share, while Bristol-Myers earned $232.3 million, or 81 cents a share, in the like period a year earlier.
26 In Madison, N.J., a spokesman for Schering-Plough said the company has 'no problems' with the average estimate by a analysts that third-quarter earnings per share rose by about 19%, to $1.
27 The company expects to achieve the 20% increase in full-year earnings per share, as it projected in the spring, the spokesman said.
28 Meanwhile, analysts said Pfizer's recent string of lackluster quarterly performances continued, as earnings in the quarter were expected to decline by about 5%.
29 Sales of Pfizer's important drugs, Feldene for treating arthritis, and Procardia, a heart medicine, have shrunk because of increased competition. 'The (strong) dollar hurt Pfizer a lot, too,' Mr. Sweig said.
30 In the third quarter last year, Pfizer earned $216.8 million, or $1.29 a share.
31 In New York, the company declined comment.
32 Analysts said they expected Upjohn's profit to be flat or rise by only about 2% to 4% as compared with $89.6 million, or 49 cents a share, it earned a year ago.
33 Upjohn's biggest-selling drugs are Xanax, a tranquilizer, and Halcion, a sedative.
34 Sales of both drugs have been hurt by new state laws restricting the prescriptions of certain tranquilizing medicines and adverse publicity about the excessive use of the drugs.
35 Also, the company's hair-growing drug, Rogaine, is selling well -- at about $125 million for the year, but the company's profit from the drug has been reduced by Upjohn's expensive print and television campaigns for advertising, analysts said.
36 In Kalamazoo, Mich., Upjohn declined comment.

Earnings for most of the nation ' s major pharmaceutical makers are believed to have moved ahead briskly in the third quarter , as companies with newer , big - selling prescription drugs fared especially well .
third quarter ,
third quarter of what year?