1



                                                                    Exhibit 11.1

                          Watson Pharmaceuticals, Inc.
                 Statement of Computation of Per Share Earnings
                                 (in thousands)





                                                  1995      1994      1993     
                                                 -------   -------   -------   
                                                                   
          Net income                             $47,890   $36,545   $50,417   
                                                 =======   =======   =======   
                                                                               
          Common stock:                                                        
            Shares outstanding from           
             beginning of period                  35,783    35,549    32,016
                                                                               
          Pro rata shares:                                                     
                                                                               
            Sales of stock                                             2,274   
                                                                               
            Exercise of stock                    
             options & warrants                      261       109       141 

            Assumed exercise of stock
             options using treasury
             stock method                          1,099       851     1,168   
                                                                               
            Shares issued to employees                          12       288   
                                                                   
            Cancellation of shares
             issued to employees                                (6)     (383)  
                                                 -------   -------   -------   
                                                                               
            Weighted average number of
             common and common                  
             equivalent shares  
             outstanding                          37,143    36,515    35,504   
                                                 =======   =======   =======   
                                                                               
          Earnings per share                     $  1.29   $  1.00   $  1.42   
                                                 =======   =======   =======