(RTTNews) - Specialty pharmaceutical company Watson Pharmaceuticals Inc. (WPI: News ) on Wednesday posted a decline in profit for the third quarter, but sales rose from last year. However, adjusted per share earnings grew from last year and topped the Street view. In addition, the company updated its earnings outlook for the full year.

The Corona, California-based company's third-quarter net income was $63.0 million or $0.55 per share, compared to $71.1 million or $0.62 per share in the year-ago quarter.

On an adjusted basis, net income advanced to $76.1 million or $0.66 per share from $54.0 million or $0.47 per share a year ago. Adjusted net income, adjusted for interest on CODES, totaled $77.7 million, up from $56.0 million reported in the prior-year quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to post earnings of $0.65 per share. Analysts' estimates typically exclude special items.

Quarterly net revenues advanced 3% to $662.1 million from the previous year's $640.7 million. Fourteen Wall Street analysts had a consensus revenue estimate of $688.53 million for the quarter.

Paul Bisaro, Watson's President and Chief Executive Officer, said, "Adjusted net income for the quarter increased over 40 percent, driven by sustainable margin improvements resulting from operating efficiencies delivered by our Global Supply Chain Initiative as well as the contribution of new products."
Key generic products such as metroprolol extended-release, potassium chloride and Next Choice contributed to a 9% growth in generic revenue, while brand revenue for the quarter exceeded $112 million, the result of contributions from new products such as Rapaflo and Gelnique, and promoted products such as AndroGel and Femring.

The company's generic segment generated third-quarter revenue of $398.0 million, an increase of 11% from the prior-year's revenue of $363.8 million, reflecting the addition of new products, including metoprolol extended-release, potassium-chloride extended-release capsules, and Next Choice. The increase was partially offset by lower sales from omeprazole 40mg. Generic other revenue dropped to $5.7 million, primarily due to a decline in royalties from Sandoz's sales of metoprolol extended-release tablets 50mg.

Brand segment reported quarterly revenues of $112.7 million, higher than the $106.0 million in the same quarter of last year, due primarily to sales of new products, including Rapaflo and Gelnique, and increased sales of Androderm. This increase was offset in part by lower sales of Ferrlecit. Brand other revenue increased to $16.6 million, due primarily to increased revenue from the company's promotion of AndroGel and Femring.

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