Watson 4th-quarter beats expectations, with 93% rise in net income

US generic drugmaker Watson Pharmaceuticals (NYSE: WPI) reported a whopping 62% increase to $1.5 billion in net revenue for the fourth quarter ended December 31, 2011, much boosted by sales over the period of a generic copy of Pfizer’s cholesterol lowerer Lipitor (atorvastatin), which went off patent during the reporting period.

On a non-GAAP basis, net income for the fourth quarter 2011 was $225.2 million or $1.77 per share, a leap of 93%, topping analysts’ estimates of $1.76 a share. For the fourth quarter, adjusted EBITDA increased 78% to $393.4 million, compared to $220.8 million for the fourth quarter 2010. Cash and marketable securities were $224.2 million as of December 31, 2011. Watson’s shares were up 4% at $60.09 in mid-morning trading yesterday.

For the full year 2011, net revenue increased 29% to $4.6 billion. On a non-GAAP basis, net income increased 42% to $603.8 million, or $4.77 per share. GAAP earnings per share were $2.06 for the full year 2011, compared to $1.48 in 2010. Adjusted EBITDA was $1.1 billion, an increase of 33%. Cash flow from operations was $632.0 million.