WPI » Topics » Segments

These excerpts taken from the WPI 10-K filed Feb 23, 2009.
Segments
 
Watson has three reportable operating segments: Generic, Brand and Distribution. The Generic segment includes off-patent pharmaceutical products that are therapeutically equivalent to proprietary products. The Brand segment includes the Company’s Specialty Products and Nephrology product lines. Watson has aggregated its Brand product lines in a single segment because of similarities in regulatory environment, methods of distribution and types of customer. This segment includes patent-protected products and certain trademarked off-patent products that Watson sells and markets as brand pharmaceutical products. The Company sells its Brand and Generic products primarily to pharmaceutical wholesalers, mail order, government programs, drug distributors and national retail drug and food store chains. The Distribution segment mainly distributes generic pharmaceutical products manufactured by third parties, as well as by Watson, primarily to independent pharmacies, pharmacy chains, pharmacy buying groups and physicians’ offices under the Anda trade name. Sales are principally generated through an in-house telemarketing staff and through internally developed ordering systems. The Distribution segment operating results exclude sales by Anda of products developed, acquired, or licensed by Watson’s Generic and Brand segments.
 
The Company evaluates segment performance based on segment net revenues, gross profit and contribution. Segment contribution represents segment gross profit less direct R&D expenses and selling and marketing


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expenses. The Company does not report total assets, capital expenditures, corporate general and administrative expenses, amortization, in process research and development (“IPR&D”) charges, gains on disposal or impairment losses by segment as such information has not been used by management, or has not been accounted for at the segment level.
 
Segments


 



Watson has three reportable operating segments: Generic, Brand
and Distribution. The Generic segment includes off-patent
pharmaceutical products that are therapeutically equivalent to
proprietary products. The Brand segment includes the
Company’s Specialty Products and Nephrology product lines.
Watson has aggregated its Brand product lines in a single
segment because of similarities in regulatory environment,
methods of distribution and types of customer. This segment
includes patent-protected products and certain trademarked
off-patent products that Watson sells and markets as brand
pharmaceutical products. The Company sells its Brand and Generic
products primarily to pharmaceutical wholesalers, mail order,
government programs, drug distributors and national retail drug
and food store chains. The Distribution segment mainly
distributes generic pharmaceutical products manufactured by
third parties, as well as by Watson, primarily to independent
pharmacies, pharmacy chains, pharmacy buying groups and
physicians’ offices under the Anda trade name. Sales are
principally generated through an in-house telemarketing staff
and through internally developed ordering systems. The
Distribution segment operating results exclude sales by Anda of
products developed, acquired, or licensed by Watson’s
Generic and Brand segments.


 



The Company evaluates segment performance based on segment net
revenues, gross profit and contribution. Segment contribution
represents segment gross profit less direct R&D expenses
and selling and marketing





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expenses. The Company does not report total assets, capital
expenditures, corporate general and administrative expenses,
amortization, in process research and development
(“IPR&D”) charges, gains on disposal or
impairment losses by segment as such information has not been
used by management, or has not been accounted for at the segment
level.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 23, 2009
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