(FORTUNE Magazine) – Some privatization issues break the mold. Take a look at Sweden's Pharmacia, one of the 20 largest drug companies in the world, with sales last year of $3.5 billion. Not only are drug companies rarely privatized, they rarely look quite like this. Unlike most giants that depend on a few blockbuster drugs to drive sales, Pharmacia makes money from different niche strengths, ranging from ( cancer therapy to allergy identification. Its top ten products account for 40% of sales; Merck meets that hurdle with three drugs. That makes Pharmacia more immune to price pressure. Half of sales are to hospitals, which has cost advantages over doctor calls, notes NatWest Securities analyst Susan Haylock. For one, the sales force can be smaller. Cost savings is in fact the reason why Pharmacia's ADRs, listed last month on Nasdaq, look like a buy. Like many recently privatized companies, Pharmacia is laying off staff and closing factories. The company's goal is to raise operating margins to 20% by 1996. Margins are expected to be 15% this year, up from 13.5% in 1993. Haylock is looking for a 25% total return on the ADR, recently $15, in the next 12 months.