Watson Pharmaceuticals Inc. (WPI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Watson Pharmaceuticals Inc. is a pharmaceutical company primarily engagedin the development production marketing and distribution of both branded and off-patent pharmaceutical products. The company's branded pharmaceutical business operates primarily in three specialty areas: Dermatology Women's Health and General Products. The company's products include therapeutic and preventive agents generally sold by prescription or over-the-counter for the treatment of human diseases and disorders. Watson Pharmaceuticals Inc. has a market cap of $3.16 billion; its shares were traded at around $30.19 with a P/E ratio of 14.8 and P/S ratio of 1.3. Watson Pharmaceuticals Inc. had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Watson Pharmaceuticals Inc. the business predictability rank of 2-star.
Gross profit for our Generic segment increased $26.2 million to $163.2 million in the three months ended March 31, 2009 compared to $137.0 million in the prior year period. The increase in gross profit was primarily due to new product launches and recent product acquisitions ($29.5 million), a reduction in costs associated with our Global Supply Chain Initiative over the prior year period ($5.6 million), an increase in sales of oral contraceptives and an increase in gross profit due to a favorable product mix. These increases were partially offset by a decrease in other revenue ($17.8 million).
Generic segment R&D expenses increased 33.0% or $7.5 million to $30.1 million in the three months ended March 31, 2008 compared to $22.6 million in the prior year period due to higher biostudy and test chemical costs ($5.4 million) and Global Supply Chain Initiative severance costs in the current year period ($1.5 million).
Brand segment R&D expenses decreased 20.5% or $3.2 million to $12.2 million in the three months ended March 31, 2008 compared to $15.4 million in the prior year period primarily due to a $5.0 million milestone payment in the prior year period related to the filing of an NDA for RapafloTM with the FDA. This decrease in R&D expenses was partially offset by increased clinical spending on recently approved new products.
Net revenues from our Distribution segment for the three months ended March 31, 2009 increased 6.1% or $8.8 million to $153.7 million compared to net revenues of $144.9 million in the prior year period primarily due to an increase in net revenues from new products launched since the first quarter of 2008 ($33.0 million) which was partially offset by lower levels of sales in the current period from price erosion and volume decreases ($24.8 million).
Distribution segment selling and marketing expenses increased 14.6% or $2.1 million to $16.1 million in the three months ended March 31, 2009 as compared to $14.0 million in the prior year period primarily related to higher freight costs ($1.0 million) and higher payroll costs ($1.0 million).
Read the The complete ReportWPI is in the portfolios of Edward Owens of Vanguard Health Care Fund.
Watson Pharmaceuticals Inc. is a pharmaceutical company primarily engagedin the development production marketing and distribution of both branded and off-patent pharmaceutical products. The company's branded pharmaceutical business operates primarily in three specialty areas: Dermatology Women's Health and General Products. The company's products include therapeutic and preventive agents generally sold by prescription or over-the-counter for the treatment of human diseases and disorders. Watson Pharmaceuticals Inc. has a market cap of $3.16 billion; its shares were traded at around $30.19 with a P/E ratio of 14.8 and P/S ratio of 1.3. Watson Pharmaceuticals Inc. had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Watson Pharmaceuticals Inc. the business predictability rank of 2-star.
Highlight of Business Operations:
Net revenues from our Generic segment for the three months ended March 31, 2009 increased 9.5% or $35.0 million to $401.7 million compared to net revenues of $366.7 million from the prior year period. This increase in sales was mainly attributable to new product launches and products acquired subsequent to the first quarter of 2008 ($57.2 million) offset in part by a decrease in other revenue ($17.8 million).Gross profit for our Generic segment increased $26.2 million to $163.2 million in the three months ended March 31, 2009 compared to $137.0 million in the prior year period. The increase in gross profit was primarily due to new product launches and recent product acquisitions ($29.5 million), a reduction in costs associated with our Global Supply Chain Initiative over the prior year period ($5.6 million), an increase in sales of oral contraceptives and an increase in gross profit due to a favorable product mix. These increases were partially offset by a decrease in other revenue ($17.8 million).
Generic segment R&D expenses increased 33.0% or $7.5 million to $30.1 million in the three months ended March 31, 2008 compared to $22.6 million in the prior year period due to higher biostudy and test chemical costs ($5.4 million) and Global Supply Chain Initiative severance costs in the current year period ($1.5 million).
Brand segment R&D expenses decreased 20.5% or $3.2 million to $12.2 million in the three months ended March 31, 2008 compared to $15.4 million in the prior year period primarily due to a $5.0 million milestone payment in the prior year period related to the filing of an NDA for RapafloTM with the FDA. This decrease in R&D expenses was partially offset by increased clinical spending on recently approved new products.
Net revenues from our Distribution segment for the three months ended March 31, 2009 increased 6.1% or $8.8 million to $153.7 million compared to net revenues of $144.9 million in the prior year period primarily due to an increase in net revenues from new products launched since the first quarter of 2008 ($33.0 million) which was partially offset by lower levels of sales in the current period from price erosion and volume decreases ($24.8 million).
Distribution segment selling and marketing expenses increased 14.6% or $2.1 million to $16.1 million in the three months ended March 31, 2009 as compared to $14.0 million in the prior year period primarily related to higher freight costs ($1.0 million) and higher payroll costs ($1.0 million).
Read the The complete ReportWPI is in the portfolios of Edward Owens of Vanguard Health Care Fund.
