Watson Pharmaceuticals, Inc. (NYSE:WPI), one of the world’s largest developers and distributors of generic drugs, reported $181.4 million net income or $1.42 per diluted share on a non-GAAP basis, during the second quarter of 2012. Its earnings surge by 42 percent from its $127.9 million or $1.01 per diluted share profit during the same quarter a year earlier.
The pharmaceutical company also reported a 25 percent net revenue increase, from $1.08 billion during the second quarter in 2011 to the current $1.36 billion. Its adjusted EBITDA went up by 37 percent, to $333 million from $243 million last year.
According to Paul Bisaro, president and chief executive officer of the company, the company also generated a strong cash flow of approximately $200 million during the quarter. He said that its solid execution of its strategies across its three businesses resulted to a double-digit growth on non-GAAP EPS revenue and adjusted EBITDA.
Bisaro also reported that its global generic climbed by 26 percent, and its Anda distribution revenues increased by 37 percent. Watson’s global brands business generated a total of $119 million in revenue, up by 6 percent. He said, “Looking beyond our numbers, we saw significant achievements against our integrated growth strategies.”
According to Bisaro, during the second quarter, the company also launched 5 new products in the United States, such as Vancocin, a drug intended to treat colitis. The company also receive the approval of its Arthrotec, a generic nonsteroidal anti-inflammatory medicine, used to treat osteoarthritis and rheumatoid arthritis. The company will launch the medicine during the fourth quarter this year. He also reported that Rapaflo, Generess Fe, and Crinone generated strong sales.
Furthermore, Bisaro said the company is making progress on its transaction to acquire Actavis, a Swiss-based drug manufacturer. Watson offered to purchase Actavis for 4.25 billion euros. The company expects to close the transaction during the fourth quarter of 2012.
On the other hand, its competitor, Mylan Inc. (NASDAQ:MYL), reported a 15 percent increase in second quarter earnings, at $0.60 per share, excluding special items. The company exceeded average analysts estimates by $0.05 per share. The company reported $1.69 billion revenue, up by 7.5%.
According to the company, its North American generic drugs and EpiPen, for severe allergic reaction, generated strong sales. The sales increased by 12.8 percent to $845.3 million however, its sales in Africa, Europe, and Middle East decline by 13.7 percent to $326.6 million.
Heather Bresch, chief executive officer of Mylan, said the company observed positive signs in Europe. The company maintained its expectation for 2012 at $2.45 to $2.55 per share, and its target earning per share in 2013 is $2.75.
Meanwhile, Bristol Myers Squibb Co. (NYSE:BMY) reported $4.44 billion revenue, an 18 percent decline yesterday. Its income was $0.48 cents, down by 14 percent. The company missed its target revenue due to the expiration of its patent for Plavix and Avapro/Avalide.