Watson Will Sell Generic Nicotine Gum

Generic drug maker Watson Pharmaceuticals Inc. said it will begin selling a generic stop-smoking gum before the end of next month. The Corona-based company said the gum will be sold over the counter in 2-milligram and 4-milligram dosages. Watson did not disclose the price. Total 1998 retail sales for SmithKline Beecham’s competing Nicorette brand gum exceeded $250 million, according to Information Resources Inc. Watson also reported second-quarter earnings in line with Wall Street expectations, at $42.1 million, or 43 cents a diluted share, up from $34.2 million, or 35 cents a share, for the same period of 1998. Revenue rose 11% to $170.2 million from $152.7 million, reflecting higher sales of branded products and increased licensing income, the company said. Watson said its gross margin on product sales increased to 65% from 63% in the comparable ’98 quarter because of its product mix. Watson shares fell $1.44 to close at $32.06 on the New York Stock Exchange. The earnings report was released after the close of trading.