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

istent with 2007 levels.

Brand research and development increased 20 percent or $8.5 million to $50.9 million, due primarily to milestone payments made following the Rapaflo(TM) and Trelstar(R) New Drug Application (NDA) filings. The Company recently received FDA approval for Rapaflo(TM) (silodosin), its alpha blocker for the treatment of the signs and symptoms of benign prostatic hyperplasia. The Company plans to launch Rapaflo(TM) in late March. Additionally, the Company recently received FDA approval for Gelnique(TM) (oxybutynin chloride) Gel 10%, its topical gel for the treatment of overactive bladder. Watson plans to launch Gelnique(TM) in late April. Also, during the fourth quarter 2008, Watson filed an NDA with FDA for its six month formulation of Trelstar(R) (triptorelin pamoate for injection suspension). The Company anticipates that FDA will take action on the Trelstar(R) application in the third quarter of 2009.


    Distribution Segment Information

                                       Three Months Ended  Twelve Months Ended
                                           December 31,       December 31,
    (Unaudited; $ in thousands)          2008      2007      2008      2007
    Distribution Segment Contribution
      Net revenue                      $162,368  $144,107  $606,190  $566,053
      Cost of sales                     137,099   123,397   511,911   486,980
        Gross profit                     25,269    20,710    94,279    79,073
        Gross margin                      15.6%     14.4%     15.6%     14.0%
      Selling and marketing              15,819    12,777    59,514    52,023
        Segment contribution             $9,450    $7,933   $34,765   $27,050
        Segment margin                     5.8%      5.5%      5.7%      4.8%

Distribution segment net revenue for the fourth quarter of 2008 increased 13 percent or $18.3 million to $162.4 million. The increase w
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SOURCE Watson Pharmaceuticals, Inc.
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