UPDATE 1-Watson 1st-qtr profit rises by oxycodone pain drug

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NEW YORK, May 1 (Reuters) - Watson Pharmaceuticals Inc. (WPI.N: Quote, Profile, Research, Stock Buzz) said on Tuesday its first-quarter earnings rose on sharply higher sales of its generic medicines, especially its oxycodone painkiller.

The Corona, California-based company earned $31.6 million, or 29 cents per share, versus $25.2 million, or 23 cents per share, in the year-earlier period.

Excluding special items, Watson earned 34 cents per share, while analysts, on average, expected 24 cents, according to Reuters Estimates.

Watson quarterly revenue jumped 65 percent to $672 million, exceeding the $622 million expected by analysts and helped by oxycodone and an array of generic medicines it obtained through its acquisition last November of rival drugmaker Andrx Corp.

The company forecast full-year revenue of between $2.5 billion and $2.6 billion, including $1.5 billion to $1.63 billion from its generic medicines. It predicted sales of $380 million to $405 million for its branded drugs, and $575 million to $615 million from distribution fees.

Watson reaffirmed its earlier forecast of 2007 earnings, excluding special items, of $1.20 to $1.30 per share.

((Reporting by Ransdell Pierson, editing by Tim Dobbyn; Reuters Messaging: ransdell.pierson.reuters.com@reuters.net; 646-223-6034; ransdell.pierson@reuters.com)) Keywords: WATSONPHARMACEUTICALS RESULTS/

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