April 30, 2009 / 1:41 PM / 9 years ago

WRAPUP 1-Mylan, Watson beat profit forecasts

* Mylan non-GAAP EPS $0.33, vs. forecast of $0.28

* Watson non-GAAP EPS $0.58 vs. forecast of $0.49

* Mylan shares fall; Watson rises

NEW YORK, April 30 (Reuters) - U.S. generic drugmakers Mylan Inc (MYL.O) and Watson Pharmaceuticals Inc WPI.N posted higher-than-expected first-quarter earnings on Thursday and raised their full-year forecasts.

Mylan, the world’s No. 3 generic drugmaker, reported net income of $71.3 million, or 23 cents per share, compared with a net loss of $446.6 million, or $1.47 per share, a year ago when the company recorded large charges.

Excluding special items, earnings of 33 cents were 5 cents ahead of the average estimate of analysts, according to Reuters Estimates.

Pittsburgh-based Mylan projected full-year earnings of $1 to $1.10 per share. It previously forecast a range of 90 cents to $1.10.

Revenue rose almost 13 percent to $1.21 billion, matching the Reuters Estimates forecast.

“The beat was driven by strong North America sales of $586 million, coupled with ongoing execution on the cost side,” JP Morgan analyst Chris Schott said in a research note.

Schott said Mylan’s North America sales topped his forecast by $71 million, due in part to strong demand for the company’s generic forms of epilepsy drug Depakote ER and depression treatment Paxil CR.

Mylan shares fell 2.9 percent to $14.11 in early trading on the New York Stock Exchange.

Watson, one of the largest U.S. generic drugmakers, said its net income slipped to $49.1 million, or 43 cents per share, from $50.6 million, or 45 cents per share, a year earlier.

Excluding special items, earnings were 58 cents per share, 9 cents ahead of analysts’ average forecast, according to Reuters Estimates.

Revenue rose 6.5 percent to $667 million, well above the Reuters Estimates forecast of $637 million.

Watson, which is based in Corona, California, lifted its full-year profit forecast, excluding items, to between $2.40 and $2.52 per share. It previously forecast $2.18 to $2.28.

Watson shares rose 1.3 percent to $31.55 on the NYSE. (Reporting by Lewis Krauskopf and Ransdell Pierson, editing by Dave Zimmerman)

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