Adjusted Global Generics gross margin decreased from 49.9 percent in 2010 to 46.2 percent in 2011, due to sales of the authorized generic versions of Lipitor® and Concerta® at lower margins. Global Brands Segment InformationThree Months EndedTwelve Months EndedDecember 31,December 31,(Unaudited; $ in millions)
120.9103.3441.0397.8Operating expenses:Cost of sales
26.120.394.488.4Research and development
6.945.367.7101.5Selling and marketing
34.2%2.0%25.0%17.6%Adjusted gross profit (1)
309.4Adjusted gross margin
78.4%80.3%78.7%77.8%(1) Adjusted gross profit represents net revenue less
adjusted cost of sales and excludes amortization of
acquired intangibles. Pro forma adjustments for the
respective periods include the following: Acquisition and licensing
-Global Brands net revenue increased 17 percent to $120.9 million in the fourth quarter of 2011. The increase in revenue was primarily the result of increased sales of Rapaflo® and Crinone® and the addition of new products including Generess® Fe.
Global Brands R&D investment decreased $38.4 million in the fourth quarter 2011 when compared to the fourth quarter 2010. The current year includes $13.1 million reduction in expense due to the revaluation of contingent liabilities, partially offset by licensing payments of $1.5 million and the prior year includes $24.9 million of additional expense associated with development milestone payments and revaluation of contingent liabilities. Glob
|SOURCE Watson Pharmaceuticals, Inc.|
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