Watson’s Generic Drug Sales Help Boost Profit

Watson Pharmaceuticals Inc. on Thursday said its fourth-quarter profit rose, lifted by strong sales of generic drugs, women’s health products and a patch to treat overactive bladder.

The Corona-based company reported net income of $52.9 million, or 48 cents a share, compared with $43.1 million, or 40 cents, a year earlier.

The quarter included one-time gains and charges that resulted in a reduction of net income by about $10.3 million.

Analysts on average expected the company to earn 48 cents a share, according to Reuters Research.

The company said revenue from the division that makes generic drugs increased 34% to $200.6 million during the period, compared with $150.1 million a year earlier, primarily as a result of launches of a painkiller and growth in nicotine gum sales.

For the last three months of 2003, revenue increased 19% to a record $1.46 billion from $1.22 billion.

Net income for 2003 increased 15% to $202.9 million, or $1.86 a share, compared with $175.8 million, or $1.64, the previous year.

Watson said it expected 2004 revenue of about $1.7 billion and earnings per share of $2.10 to $2.20, excluding the dilutive effect of the potential conversion of debt into Watson stock.

The company estimated first-quarter earnings of 49 cents to 51 cents a share on revenue of about $410 million.

Analysts on average expect per-share earnings of 52 cents in the first quarter and $2.14 for the year.

Watson shares Thursday fell 22 cents to $46 on the New York Stock Exchange.