Actavis 8-K Results of Operations and Financial Condition

Exhibit 99.1

Watson Pharmaceuticals, Inc.

Reclassified Product Net Revenues and Gross Profit Summary* - 2003 and First Half of 2004

($ in 000’s)

	2003															2004
(Unaudited)	Q1			Q2			Q3			Q4			FY			Q1			Q2			1H
Net revenues:
Branded pharmaceutical products	$	98,543		$	100,026		$	102,091		$	96,192		$	396,852		$	88,376		$	84,510		$	172,886
Generic pharmaceutical products	228,417			247,142			236,757			299,304			1,011,620			306,022			305,566			611,588
Other	9,962			8,712			19,908			10,668			49,250			15,260			9,292			24,552
Total net revenues	$	336,922		$	355,880		$	358,756		$	406,164		$	1,457,722		$	409,658		$	399,368		$	809,026
Gross profit:
Branded pharmaceutical products	$	73,579		$	76,781		$	80,548		$	76,167		$	307,075		$	70,725		$	64,933		$	135,658
Generic pharmaceutical products	103,780			116,011			115,969			140,986			476,746			127,192			126,289			253,481
Other	9,962			8,712			19,908			10,668			49,250			15,260			9,292			24,552
Total gross profit	$	187,321		$	201,504		$	216,425		$	227,821		$	833,071		$	213,177		$	200,514		$	413,691
Gross margin by segment:
Branded pharmaceutical products	74.7		%	76.8		%	78.9		%	79.2		%	77.4		%	80.0		%	76.8		%	78.5		%
Generic pharmaceutical products	45.4		%	46.9		%	49.0		%	47.1		%	47.1		%	41.6		%	41.3		%	41.4		%
Gross margin on product net revenues	54.2		%	55.5		%	58.0		%	54.9		%	55.7		%	50.2		%	49.0		%	49.6		%
Overall gross margin	55.6		%	56.6		%	60.3		%	56.1		%	57.1		%	52.0		%	50.2		%	51.1		%
Product revenue contribution:
Branded pharmaceutical products	30		%	29		%	30		%	24		%	28		%	22		%	22		%	22		%
Generic pharmaceutical products	70		%	71		%	70		%	76		%	72		%	78		%	78		%	78		%

*  Reclassified product net revenues and gross profit reflect the reclassification of the bulk of oral contraceptive products, and certain other products from general products, from the branded pharmaceutical segment to the generic pharmaceutical segment.

Watson Pharmaceuticals, Inc.

Reclassified Product Net Revenues and Gross Profit Summary* - 2003 and First Half of 2004

($ in 000’s)

	2003										2004
(Unaudited)	Q1		Q2		Q3		Q4		FY		Q1		Q2		1H
GENERIC PHARMACEUTICAL
Previously reported net revenue	143,199		161,267		154,208		200,603		659,277		225,017		224,313		449,330
Reclassified net revenue adjustment - GP	6,708		9,415		9,640		11,952		37,715		10,210		12,469		22,679
Reclassified net revenue adjustment - WH	78,510		76,460		72,909		86,749		314,628		70,795		68,784		139,579
Reclassified net revenue	228,417		247,142		236,757		299,304		1,011,620		306,022		305,566		611,588
GROSS PROFIT
Previously reported gross profit	36,662		48,752		52,610		73,172		211,196		74,183		73,129		147,312
Reclassified gross profit adjustment - GP & WH	67,118		67,259		63,359		67,814		265,550		53,009		53,160		106,169
Reclassified gross profit	103,780		116,011		115,969		140,986		476,746		127,192		126,289		253,481
Previously Reported Gross Margin	25.6	%	30.2	%	34.1	%	36.5	%	32.0	%	33.0	%	32.6	%	32.8	%
Reclassified Gross Margin	45.4	%	46.9	%	49.0	%	47.1	%	47.1	%	41.6	%	41.3	%	41.4	%
BRANDED PHARMACEUTICAL
SPECIALTY PRODUCTS REVENUE
Previously reported net revenue - GP	48,477		60,605		54,482		52,523		216,087		43,067		50,577		93,644
Reclassified net revenue adjustment - GP	(6,708	)	(9,415	)	(9,640	)	(11,952	)	(37,715	)	(10,210	)	(12,469	)	(22,679	)
Reclassified net revenue - GP	41,769		51,190		44,842		40,571		178,372		32,857		38,108		70,965
Previously reported net revenue - WH	95,510		88,507		88,973		99,349		372,339		82,363		73,751		156,114
Reclassified net revenue adjustment - WH	(78,510	)	(76,460	)	(72,909	)	(86,749	)	(314,628	)	(70,795	)	(68,784	)	(139,579	)
Reclassified net revenue - WH	17,000		12,047		16,064		12,600		57,711		11,568		4,967		16,535
Reclassified net revenue - SP	58,769		63,237		60,906		53,171		236,083		44,425		43,075		87,500
NEPHROLOGY REVENUE
Previously reported net revenue	39,774		36,789		41,185		43,021		160,769		43,951		41,435		85,386
Previously reported net revenue	39,774		36,789		41,185		43,021		160,769		43,951		41,435		85,386
CONSOLIDATED BRANDED REVENUE
Previously reported net revenue	183,761		185,901		184,640		194,893		749,195		169,381		165,763		335,144
Reclassified net revenue adjustment - GP	(6,708	)	(9,415	)	(9,640	)	(11,952	)	(37,715	)	(10,210	)	(12,469	)	(22,679	)
Reclassified net revenue adjustment - WH	(78,510	)	(76,460	)	(72,909	)	(86,749	)	(314,628	)	(70,795	)	(68,784	)	(139,579	)
Reclassified net revenue	98,543		100,026		102,091		96,192		396,852		88,376		84,510		172,886
GROSS PROFIT
Previously reported gross profit	140,697		144,040		143,907		143,981		572,625		123,734		118,093		241,827
Reclassified gross profit adjustment - GP & WH	(67,118	)	(67,259	)	(63,359	)	(67,814	)	(265,550	)	(53,009	)	(53,160	)	(106,169	)
Reclassified gross profit	73,579		76,781		80,548		76,167		307,075		70,725		64,933		135,658
Previously Reported Gross Margin	76.6	%	77.5	%	77.9	%	73.9	%	76.4	%	73.1	%	71.2	%	72.2	%
Reclassified Gross Margin	74.7	%	76.8	%	78.9	%	79.2	%	77.4	%	80.0	%	76.8	%	78.5	%

GP = General Products WH = Women’s Health SP = Specialty Products

* Reclassified product net revenues and gross profit reflect the reclassification of the bulk of oral contraceptive products, and certain other products, from the branded pharmaceutical segment to the generic pharmaceutical segment.