Watson's net income doubles on distribution

US generic and branded drugmaker Watson Pharmaceuticals' profit doubled during the third quarter of 2008, compared to the same period of 2007, mainly due to a rise in distribution revenue.

The firm's net income jumped to $71.1 million, or $0.62 per share, versus $34.6 million, or $0.31 per share. R&D expenses rose 31% to $45.3 million, while total turnover was up 8% to $640.7 million. Sales for the firm's branded business dropped 1% to $106.0 million, whereas generics revenue was up 2% to $363.8 million. Turnover for the company's distribution segment, however, advanced 32% to $170.9 million. During the first nine months of the year, Watson increased its cash and cash equivalent assets by 66% to $339.4 million.

Watson also updated its full-year 2008 guidance, predicting revenue of around $2.5 billion, with earnings per share of between $2.05 and $2.10.