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Watson Pharmaceuticals Reports First Quarter 2009 Results; Raises 2009 Outlook
Date:4/30/2009

9 decreased slightly to $98.2 million. Brand other revenue decreased $2.5 million to $13.8 million.

Brand selling and marketing expense for the first quarter of 2009 increased 32 percent to $36.9 million, due primarily to preparation for the launches of Rapaflo(TM) and Gelnique(TM). Watson's urology sales force began promoting Rapaflo(TM) on April 7, 2009 and our specialty salesforce will begin promoting Gelnique(TM) in May 2009.

    Distribution Segment Information

                                       Three Months Ended
                                            March 31,
                                          ------------
    (Unaudited; $ in millions)            2009    2008
                                          ----    ----
    Distribution Segment Contribution
      Net revenue                        $153.7  $144.9
      Cost of sales                       126.0   122.9
                                          -----   -----
        Gross profit                       27.7    22.0
                                           ----    ----
        Gross margin                       18.0%   15.2%
      Selling and
       marketing                           16.1    14.0
                                           ----    ----
        Segment
         contribution                     $11.6    $8.0
                                          =====    ====
        Segment margin                      7.5%    5.5%

Distribution segment net revenue for the first quarter of 2009 increased six percent or $8.8 million to $153.7 million. The increase was primarily due to sales of new products. Distribution revenue excludes sales of Watson products.

Distribution segment gross margin was 18.0 percent in the first quarter of 2009 compared to 15.2 percent in the first quarter 2008 and 15.6 percent in the fourth quarter of 2008. The increase in gross margin was prim
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SOURCE Watson Pharmaceuticals, Inc.
Copyright©2009 PR Newswire.
All rights reserved

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