Watson beats forecasts as first-quarter 2010 revenue climbs 28% with earnings up 33%

US generic drugs maker Watson Pharmaceuticals reported a 28% increase in net revenue for the first quarter of 2010 to $856.5 million, compared with first quarter 2009. On an adjusted cash basis, net income increased 25% to $100.3 million, or $0.81 per share.

GAAP earnings for the quarter were $0.57 per share, compared to $0.43 per share in the prior year period, a rise of 32.6%, and exceeded Wall Street analysts' expectations of $0.74 per share on revenues of $829.5 million. For the first quarter, adjusted EBITDA increased 26% to $198.9 million. Cash and marketable securities were $182.3 million as of March 31, 2010.

"Watson completed its first quarter with strong earnings and significant momentum for the remainder of the year," said Paul Bisaro, president and chief executive, noting that "our generics business benefitted from the first full quarter of sales from our newly-acquired international business, the launch of Diltiazem LA, as well as growth of our Metoprolol business. We have entered into 10 new patent challenges so far this year. In our global brands business, we received approval for a six month formulation of Trelstar [triptorelin pamoate, a prostate cancer treatment], and completed several key product development deals, expanding our women's health portfolio and furthering our biologics efforts.