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Watson Pharmaceuticals Reports Fourth Quarter and Full Year 2007 Results; Provides 2008 Outlook
Date:2/20/2008

the fourth quarter 2007, due to the increase in other revenue and improved manufacturing costs.

For the full year 2007, Brand product sales increased 6 percent or $21.1 million to $375.2 million compared to $354.1 million for 2006 due primarily to increased sales of Trelstar(R) and Androderm(R).

Brand other revenue increased $38.1 million to $53.5 million for 2007, due to increased revenue from the co-promotion of AndroGel(R) and other promoted products.

Brand segment gross margin for 2007 increased from 75 percent to 77 percent, due to the increase in other revenue and improved manufacturing costs.

During the fourth quarter 2007, Watson submitted a New Drug Application (NDA) with FDA for silodosin, a new chemical entity under development for the treatment of the signs and symptoms of benign prostatic hyperplasia. Watson's application was accepted for filing by FDA on February 11, 2008. The Company also recently completed the Phase 3 program on its topical gel formulation of oxybutynin for overactive bladder. Watson remains on track to submit an NDA to FDA in mid 2008. Finally, Debiopharm, Watson's development partner on Trelstar(R), completed the Phase 3 program for its six-month formulation of Trelstar(R), an investigational product for the treatment of advanced prostate cancer. Pending a final analysis of the data, Watson expects Debiopharm to file an NDA for the Trelstar(R) six-month formulation in the second half of 2008.

Distribution Segment Information

Three Months Ended Twelve Months Ended

December 31, December 31,

(Unaudited; $ in thousands) 2007 2006* 2007 2006*

Distribution Segment Contribution

Net revenue $144,107 $92,796 $566,053 $92,796

Cost of sales 123,397 82,065 486,980 82,065

Gross profit
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SOURCE Watson Pharmaceuticals, Inc.
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