MORRISTOWN, N.J. (AP) — Watson Pharmaceuticals Inc. said today its first-quarter net income jumped 42 percent with generic sales getting a boost from a recent acquisition overseas. The company raised its outlook for the year.
Global generics revenue climbed 35 percent in the quarter to $543.8 million, partially due to the addition of product sales from new international markets.
Watson completed its $1.75 billion buyout of Arrow Group, based in London, in December.
Arrow owns the U.S. rights to the authorized generic version of Pfizer Inc.’s cholesterol drug Lipitor, which is one of the best-selling brand-name drug in the world.
Watson said first-quarter net income was $69.8 million, or 57 cents per share, in the three months that ended March 31. That compares with $49.1 million, or 43 cents per share, in the first quarter of 2009.
Adjusted for acquisitions and other one-time costs, per-share earnings were 81 cents, compared with 69 cents last year.
Revenue rose 28 percent to $856.5 million, and the company’s adjusted net income was 81 cents per share.
Analysts polled by Thomson Reuters expected, on average, earnings of 74 cents per share on $829.49 million in revenue.
The company said it now expects 2010 adjusted earnings to be between $3.25 and $3.45 per share. Watson said in February it expected $3.05 and $3.30 per share.
Analysts, on average, forecast $3.26 per share.
The company said revenue from its global brands segment fell 18 percent to $91.3 million in the quarter. Cost of sales, excluding amortization, rose 30 percent to $504.7 million, and total operating expenses were up 29 percent to $756.2 million.
