Watson Pharmaceuticals 1Q profit rises on lower costs

CORONA, Calif.—Branded and generic drug maker Watson Pharmaceuticals Inc. said Thursday its first-quarter profit rose as lower costs offset the loss of revenue from its oxycodone pain treatment.

The company earned $50.6 million, or 45 cents per share, compared with profit of $31.6 million, or 29 cents per share, a year ago. Excluding charges for the company's supply chain plan and a gain from the sale of securities, profit reached 55 cents per share.

Revenue fell 7 percent to $626.9 million from $671.6 million.

Analysts polled by Thomson Financial expected profit of 52 cents per share on revenue of $643 million.

Generic product sales fell 17 percent to $342.5 million primarily on the loss of revenue from oxycodone HCl controlled-release tablets. Brand product sales rose 9 percent to $99 million, mainly on higher sales of the iron deficiency anemia treatment Ferrlecit and prostate cancer drug Trelstar.

Costs related to product sales fell 11 percent to $380.1 million while operating expenses fell 11 percent to $164.8 million.