NEW YORK (CNNMoney.com) - European drugmakers are getting ready to report first quarter earnings in the next few days, and could be better positioned for growth than their American rivals

U.S. drugmakers, including Merck (down $0.14 to $34.86, Research), Pfizer (down $0.05 to $24.90, Research), Eli Lilly & Co. (down $0.78 to $52.84, Research), Schering-Plough (up $0.13 to $19.53, Research) and Wyeth (up $1.16 to $47.93, Research), posted mostly strong earnings for the first quarter. But in many cases the U.S. companies were heavily dependant on cost-cutting as a means of bringing up earnings.

"Both the European and U.S. companies are using cost-cutting as a means of controlling EPS growth, but it's clear that the Europeans have better fundamentals and topline growth, with higher quality earnings over all," said Bernstein analyst Gbola Amusa. "Cost-cutting has historically not been a way of generating share holder returns, but it seems to be in use of late."

European drugmakers, like Novartis (up $0.58 to $57.33, Research), Sanofi-Aventis (down $0.24 to $46.63, Research) and GlaxoSmithKline (up $0.05 to $53.19, Research), are expected to file first quarter earnings that are more solidly based on sales growth than their U.S. counterparts, analysts say.

"In general, the Europeans are better positioned than the Americans, because right now you can say, almost to a company, that the domestics are focused on cost control, while the Europeans are focused on topline growth," said Les Funtleyder, analyst for Miller Tabak. "I do believe the domestic companies will return to topline, but it won't happen in general until 2007."

The Swiss drug giant Novartis, which totaled $32 billion in 2005 sales, is expected to report 72 cents EPS for the first quarter, up 15 percent from the same period last year, according to analysts interviewed by Thomson First Call. The company plans to report earnings on April 24.

Funtleyder of Miller Tabak, who rates Novartis a "buy" with a price target of $63, said the company's first quarter earnings will be driven by strong sales of high blood pressure treatment Diovan, the company's top seller that jumped 19 percent in 2005 sales to $3.7 billion, the chronic myeloid leukemia treatment Gleevec, with a 32 percent surge in 2005 sales to $2.2 billion, and bone cancer treatment Zometa, which jumped 13 percent in 2005 to $1.2 billion.

"I think they are probably about the best positioned as any pharma company on the globe, as far as having great pipelines and limited patent expirations," said Funtleyder.

Sanofi-Aventis, Europe's largest drugmaker with $33.6 billion in 2005 sales, is expected to report 85 cents of EPS for first quarter earnings, up 21 percent, according to Thomson First Call consensus projects. The French drugmaker reports earnings on May 5.

Amusa, the analyst for Bernstein, said that Sanofi-Aventis' earnings will be influenced by some post-merger cost-cutting. But he said that earnings growth will also be driven by strong sales from Plavix, a drug that breaks up blood clots to prevent strokes and totaled $5.8 billion in 2005 sales, and Lantus, a diabetes treatment with $1.5 billion in 2005 sales.

GlaxoSmithKline, the British drugmaker with $33.2 billion in 2005 sales, is expected to report 41 cents for first quarter earnings, up 8.5 percent, according to Thomson First Call, which interviewed four analysts for the projection. The drugmaker is expected to report earnings on April 27.

GlaxoSmithKline is a promising company regarding future growth, especially because of successful studies involving its experimental breast cancer drug Tykerb. This has ramped up the company's market presence in the area of cancer treatment, said Amusa.

In addition, the European drugmakers are reaping some benefit from the increased Medicare coverage enacted at the beginning of this year, and this will be reflected in first quarter earnings.

"The most important thing is that Medicare Part D was implemented, and this boost for seniors should make earnings quite buoyant," said Amusa. "We think investors will be very pleased with the numbers."

To read about Merck's first quarter earnings click here, and to find about Pfizer click here.

The analysts interviewed for this story do not own stock in the companies they discussed.