Watson Profit Falls on Lower Drug Prices

Watson Pharmaceuticals Inc., the drug maker seeking to acquire Andrx Corp. for $1.9 billion, said first-quarter profit fell 35% as prices on its generic drugs declined.

Net income fell to $25.2 million, or 23 cents a share, from $38.6 million, or 32 cents, a year earlier, the Corona-based company said. Revenue rose 1.6% to $407.2 million.

Results were hurt by a decline in brand-name prescriptions and low prices for generic drugs because of increased competition, the company said. The Andrx acquisition would help Watson make generic products that other companies would find harder to produce.

Watson has announced plans to take some of its operations outside the U.S., close a plant in Puerto Rico and sell an injectable-drugs facility in Arizona in 2007 to cut costs.

Watson shares fell $2.54 to $27.45.