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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