May 1--Watson Pharmaceuticals Inc. on Thursday reported stronger than anticipated profits in its first quarter and predicts 2009 will be a better year than its initial estimates suggested, the Corona-based company said in a statement.

Watson reported earnings of $49.1 million in the first three months of the year, or 43 cents per share. Excluding several special items, the Corona-based drugmaker would have earned $66.5 million in the quarter, or 58 cents per share, beating Wall Street estimates by 9 cents.

Net revenues for Watson were more than $667 million, a record high for the quarter. Based on the strong performance, company officials raised its earnings estimates for the year to between $2.40 and $2.52 per share, about 22 cents more than the original prediction.

About 60 percent of the drugmaker's revenues come from sales of generic drugs, company officials told analysts at a conference call Thursday. The quarter saw the launch of new products that included an extended release potassium chloride prescription and a new branded medication that treats an overactive prostate.

"It was a strong quarter for all our businesses," said CEO Paul Bisaro.

Company officials have said that they have the cash to acquire other companies, and Bisaro indicated in Thursday's call that they are inclined to make such a move.

Watson's stock closed at $30.94, down 20 cents, in New York Stock Exchange trading after being up more than 50 cents early in the day.

Reach Jack Katzanek at 951 368-9553 or at jkatzanek@PE.com

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