Watson’s results include Arrow Group results since the acquisition on December 2, 2009. On an adjusted cash basis, net income for the fourth quarter 2009 increased 28% to $94.4m, compared to $73.7m in the fourth quarter 2008.
Watson said that the fourth quarter results were in-line with its January 13, 2010 projection, after taking into account the exclusion of $22.2m in amortization expense for adjusted cash basis reporting purposes.
Adjusted EBITDA increased 32% to $188.8m, versus $143.2m. Cash and marketable securities were $215m as of December 31, 2009.
Global generic net revenue increased 27% to $467.3m, reflecting the recent launch of new products, including metoprolol succinate extended-release, higher sales of potassium-chloride extended-release capsules and the addition of Arrow.
Adjusted global generic gross profit increased 37% to $218.3m, compared to $159m in the fourth quarter of 2008.
Global generic research and development expense increased $7.6m to $43.4m, primarily due to the inclusion of Arrow R&D expense in December 2009. Watson currently has more than 100 ANDAs pending in the US, including tentative approvals, and more than 240 product applications pending outside of the US.
Paul Bisaro, president and CEO of Watson, said: “Watson achieved strong results across all businesses, and against our aggressive corporate goals in a year that included the fundamental global reshaping of our company through the acquisition of the Arrow Group.
“We grew our generics business in the US through the introduction of eight new products, and we increased our investment in new product development that resulted in a record filing of 36 Abbreviated New Drug Applications with the FDA. We expanded our brand product portfolio with the back-to-back launches of two new products in urology – Rapaflo and Gelnique.”