Watson Pharmaceuticals, Inc. (NYSE:WPI)’s Q1 earnings increased 22% as the drug maker posted sharply higher revenue with an increase from new generic drugs and as its branded pharmaceuticals and distribution business as well announced double-digit expansion.
For the year, the company upgraded the low end of its per-share earnings forecast by a nickel and currently expects in between $5.55 and $5.80. Watson lifted its revenue forecast by $100 million to $5.5 billion.
Watson has been getting advantage from the release of a generic version of Pfizer Inc.’s (PFE) cholesterol drug Lipitor and its release of authorized generic versions of Johnson & Johnson’s (JNJ) Concerta treatment for attention-deficit/hyperactivity previous year. In the most recent period, they assisted boost generics revenue, the largest contributor to the top line, by 86%.
Bisaro on Monday stated that Watson will continue to seek strategic opportunities to propel expansion of its international brands and biologics and as well remain focused on the expansion into specialty distribution.
Watson Pharmaceuticals posted a profit of $54.8 million, or 43 cents per share, higher from $44.8 million, or 36 cents per share, a year previously. Not including acquisition-related expenses and other items, earnings increased to $1.64 as compared to 89 cents.
Revenue rose 74% to $1.52 billion.
Analysts surveyed by Thomson Reuters most recently expected earnings of $1.60 on sales of $1.49 billion.
Revenue from Watson’s branded drugs increased 13% and distribution revenue rose by two thirds.
Shares settled Monday at $75.36 with the negative change of-1.05%. The stock added 26% this year.
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