Watson Pharmaceuticals Inc. (WPI, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $3.66 billion; its shares were traded at around $34.73 with a P/E ratio of 16.9 and P/S ratio of 1.4. 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.
Net revenues from our Brand segment for the three months ended June 30, 2009 decreased 2.3% or $2.7 million to $115.3 million compared to net revenues of $118.0 million in the prior year period. The decrease was primarily attributable to lower sales within the Nephrology/Medical product line ($12.5 million) which was partially offset by higher sales within the Specialty Products product line ($8.6 million) and higher other revenues ($1.2 million).
Cost of sales for our Brand segment decreased 10.0% or $2.4 million to $22.0 million in the three months ended June 30, 2009 compared to $24.4 million in the prior year period. The decrease in cost of sales was due to lower product sales in the current year period and lower unit manufacturing costs due to higher manufacturing volumes at certain of our manufacturing sites.
Brand segment R&D expenses increased 25.4% or $2.6 million to $12.7 million in the three months ended June 30, 2009 compared to $10.1 million in the prior year period primarily due to increased clinical spending.
Brand segment selling and marketing expenses increased 32.3% or $9.5 million to $39.1 million in the three months ended June 30, 2009 as compared to $29.6 million in the prior year period primarily related to increased product promotion, field force and marketing costs to support launch activities related to RapafloTM and GelniqueTM.
Net revenues from our Distribution segment for the three months ended June 30, 2009 increased 26.1% or $33.3 million to $161.3 million compared to net revenues of $128.0 million in the prior year period primarily due to an increase in net revenues from new products launched during the second quarter of 2009 ($23.1 million) and higher levels of sales in the brand product category in the current year quarter.
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 $3.66 billion; its shares were traded at around $34.73 with a P/E ratio of 16.9 and P/S ratio of 1.4. 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 June 30, 2009 increased 6.5% or $24.5 million to $401.2 million compared to net revenues of $376.7 million from the prior year period. This increase in net revenues was mainly attributable to new product launches and products acquired subsequent to the second quarter of 2008 ($58.6 million) offset in part by a decrease in other revenue ($25.0 million) and a decrease in sales of certain oral contraceptives.Net revenues from our Brand segment for the three months ended June 30, 2009 decreased 2.3% or $2.7 million to $115.3 million compared to net revenues of $118.0 million in the prior year period. The decrease was primarily attributable to lower sales within the Nephrology/Medical product line ($12.5 million) which was partially offset by higher sales within the Specialty Products product line ($8.6 million) and higher other revenues ($1.2 million).
Cost of sales for our Brand segment decreased 10.0% or $2.4 million to $22.0 million in the three months ended June 30, 2009 compared to $24.4 million in the prior year period. The decrease in cost of sales was due to lower product sales in the current year period and lower unit manufacturing costs due to higher manufacturing volumes at certain of our manufacturing sites.
Brand segment R&D expenses increased 25.4% or $2.6 million to $12.7 million in the three months ended June 30, 2009 compared to $10.1 million in the prior year period primarily due to increased clinical spending.
Brand segment selling and marketing expenses increased 32.3% or $9.5 million to $39.1 million in the three months ended June 30, 2009 as compared to $29.6 million in the prior year period primarily related to increased product promotion, field force and marketing costs to support launch activities related to RapafloTM and GelniqueTM.
Net revenues from our Distribution segment for the three months ended June 30, 2009 increased 26.1% or $33.3 million to $161.3 million compared to net revenues of $128.0 million in the prior year period primarily due to an increase in net revenues from new products launched during the second quarter of 2009 ($23.1 million) and higher levels of sales in the brand product category in the current year quarter.
Read the The complete ReportWPI is in the portfolios of Edward Owens of Vanguard Health Care Fund.
