Watson Pharmaceuticals Inc. (WPI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Watson Pharmaceuticals Inc. has a market cap of $5.15 billion; its shares were traded at around $41.36 with a P/E ratio of 15 and P/S ratio of 1.8. Watson Pharmaceuticals Inc. had an annual average earning growth of 6% over the past 10 years. GuruFocus rated Watson Pharmaceuticals Inc. the business predictability rank of 4-star.WPI is in the portfolios of Edward Owens of Vanguard Health Care Fund, Jeremy Grantham of GMO LLC.
Cost of sales for our Global Generics segment increased 30.6% or $71.8 million to $305.9 million for the three months ended June 30, 2010 compared to $234.1 million in the prior year period. This increase in cost of sales was mainly attributable to the increase in international sales during the quarter ($67.7 million) and higher product sales from new product launches in the current year partially offset by manufacturing efficiencies as a
R&D expenses within our Global Brands segment increased 36.2% or $4.5 million to $17.2 million compared to $12.7 million in the prior year period primarily due to increased international R&D expenditures from recently acquired Eden ($1.9 million) and higher clinical spending ($1.5 million).
Selling and marketing expenses within our Global Brands segment decreased 9.5% or $3.7 million to $35.4 million compared to $39.1 million in the prior year period primarily due to lower field force personnel-related costs ($1.9 million) and lower promotional costs ($2.0 million) due to the loss of Ferrlecit®.
Net revenues from our Distribution segment for the three months ended June 30, 2010 increased 24.5% or $39.5 million to $200.8 million compared to net revenues of $161.3 million in the prior year period primarily due to an increase in new products launched ($52.6 million) and higher third-party brand product sales ($6.6 million). These increases to net revenues were partially offset by a decline in the base business ($19.7 million).
Corporate general and administrative expenses increased 22.2% or $13.8 million to $75.9 million compared to $62.1 million from the prior year period primarily due to higher international general and administrative expenses for the quarter ($12.6 million), higher legal and personnel costs ($5.5 million) and higher Anda bad debt expense ($5.8 million). The prior year period included $11.9 million in acquisition expenses related to the Arrow Acquisition.
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Watson Pharmaceuticals Inc. has a market cap of $5.15 billion; its shares were traded at around $41.36 with a P/E ratio of 15 and P/S ratio of 1.8. Watson Pharmaceuticals Inc. had an annual average earning growth of 6% over the past 10 years. GuruFocus rated Watson Pharmaceuticals Inc. the business predictability rank of 4-star.WPI is in the portfolios of Edward Owens of Vanguard Health Care Fund, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Net revenues from our Global Generics segment during the three months ended June 30, 2010 increased 42.3% or $169.8 million to $571.0 million compared to net revenues of $401.2 million in the prior year period. The increase in net revenues was mainly attributable to the increase in international product sales during the quarter ($102.6 million) as well as revenue from new product launches in 2010 ($74.8 million) partially offset by lower pricing on certain products.Cost of sales for our Global Generics segment increased 30.6% or $71.8 million to $305.9 million for the three months ended June 30, 2010 compared to $234.1 million in the prior year period. This increase in cost of sales was mainly attributable to the increase in international sales during the quarter ($67.7 million) and higher product sales from new product launches in the current year partially offset by manufacturing efficiencies as a
R&D expenses within our Global Brands segment increased 36.2% or $4.5 million to $17.2 million compared to $12.7 million in the prior year period primarily due to increased international R&D expenditures from recently acquired Eden ($1.9 million) and higher clinical spending ($1.5 million).
Selling and marketing expenses within our Global Brands segment decreased 9.5% or $3.7 million to $35.4 million compared to $39.1 million in the prior year period primarily due to lower field force personnel-related costs ($1.9 million) and lower promotional costs ($2.0 million) due to the loss of Ferrlecit®.
Net revenues from our Distribution segment for the three months ended June 30, 2010 increased 24.5% or $39.5 million to $200.8 million compared to net revenues of $161.3 million in the prior year period primarily due to an increase in new products launched ($52.6 million) and higher third-party brand product sales ($6.6 million). These increases to net revenues were partially offset by a decline in the base business ($19.7 million).
Corporate general and administrative expenses increased 22.2% or $13.8 million to $75.9 million compared to $62.1 million from the prior year period primarily due to higher international general and administrative expenses for the quarter ($12.6 million), higher legal and personnel costs ($5.5 million) and higher Anda bad debt expense ($5.8 million). The prior year period included $11.9 million in acquisition expenses related to the Arrow Acquisition.
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