* Q1 EPS ex-items $1.64, tops Wall St view by 4 cents
* Revenue rises to $1.52 bln from $876.5 mln year ago
April 30 Watson Pharmaceuticals Inc
posted higher-than-expected quarterly profit on Monday, as
generic versions of the Lipitor cholesterol fighter and Lovenox
blood thinner helped revenue soar by 74 percent.
First-quarter net income rose to $54.8 million, or 43 cents
per share, from $45.3 million, or 36 cents per share, a year
Excluding special items, earnings of $1.64 topped the
average estimate of analysts by 4 cents per share, according to
Thomson Reuters I/B/E/S.
Total revenue rose to $1.52 billion in the first quarter
from $876.5 million in the 2011 period.
"Overall, a good quarter, in our view, though we note the
revenue mix was somewhat unfavorable given strength of lower
margin Distribution sales and softer-than-expected Brand sales,"
Wells Fargo analyst Michael Tong wrote in a research note.
"In general, we think Watson investors are largely looking
toward 2013 and that the Actavis deal allays concerns about 2013
growth," Tong added.
Last week, Watson agreed to pay at least $5.6 billion for
privately held Actavis to cement its status as one of the
world's biggest suppliers of generic drugs and expand further
Revenue in its generic unit rose to $1.12 billion in the
quarter from $600.1 million, driven by new product launches and
an increase in international sales.
The company said its global generics business launched more
than 60 new products and expanded its global presence with its
acquisition of Ascent Pharmahealth.
Watson forecast 2012 earnings per share of $5.55 to $5.80,
excluding items, on revenue of $5.5 billion. According to
Thomson Reuters I/B/E/S, Wall Street was expecting earnings of
$5.80 per share on revenue of $5.5 billion.