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Watson Pharmaceuticals Reports Fourth Quarter and Full Year 2008 Results; Provides 2009 Outlook
Date:2/19/2009

ly Chain Initiative. Excluding this item, Generic gross profit was $618.3 million, or 41.9 percent of revenue in 2008.


    Brand Segment Information

                                       Three Months Ended  Twelve Months Ended
                                           December 31,       December 31,
    (Unaudited; $ in thousands)           2008     2007      2008      2007
    Brand Segment Contribution
        Product sales                   $102,269  $94,106  $397,025  $375,202
        Other revenue                     13,442   15,232    57,953    53,520
      Net revenue                        115,711  109,338   454,978   428,722
      Cost of sales                       24,912   25,814   107,079    99,913
        Gross profit                      90,799   83,524   347,899   328,809
        Gross margin                       78.5%    76.4%     76.5%     76.7%

      Research and development            11,809   10,435    50,904    42,367
      Selling and marketing               31,605   28,664   118,198   108,061
        Segment contribution             $47,385  $44,425  $178,797  $178,381
        Segment margin                     41.0%    40.6%     39.3%     41.6%

Brand product sales for the fourth quarter of 2008 increased $8.2 million or 9 percent to $102.3 million, primarily due to increased sales of Specialty products. Brand other revenue decreased $1.8 million to $13.4 million.

Gross margin for the Brand segment increased from 76.4 percent in the fourth quarter 2007 to 78.5 percent in the fourth quarter 2008, reflecting a more favorable product mix.

For the full year 2008, Brand segment product sales increased 6 percent or $21.8 million to $397.0 million, compared to $375.2 million for 2007, due primarily to increased sales of Trelstar(R). Brand other revenue increased $4.4 million to $58.0 million.

Brand segment gross margin for 2008 was 76.5%, cons
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SOURCE Watson Pharmaceuticals, Inc.
Copyright©2009 PR Newswire.
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