NEW YORK: Watson Pharmaceuticals, the world’s fifth-largest generic drugmaker, lifted its full-year earnings forecast as it benefits from a generic version of the big-selling Lovenox blood clot prevention drug.

Watson also stood by its target of increasing profit in 2013 by roughly another 10 per cent, even after giving the rosier 2012 outlook. Its shares rose 3.7 per cent.

“The numbers are conservative, there’s a lot of cushion for upside built in,” Canaccord Genuity analyst Randall Stanicky said. “This is going to be a beat-and-raise story as we move throughout the year.”

Watson Chief Executive Officer Paul Bisaro said the company was interested in acquisitions that would boost its generics business and its brand-drugs business, which focuses on women’s health and urology. “We’re prepared to do one or both if we can,” Bisaro said on a conference call with analysts.

Watson has more flexibility to take on debt for a deal than rival generic drugmakers Mylan Inc and Teva Pharmaceutical Industries Inc, Stanicky said. Watson’s deals have traditionally added to earnings, so a deal could further boost results, he said.

“We expect more activity this year that’s not built into outlook, and that’s likely to take numbers higher,” Stanicky said.

Watson’s fourth-quarter net income rose to $94.8 million, or 75 cents per share, from $18.3 million, or 15 cents per share, a year before. Excluding items, earnings of $1.77 per share topped the average estimate of analysts by 1 cent, according to Thomson Reuters.

 Revenue jumped 62 per cent to $1.54 billion, roughly in line with Wall Street’s estimates. Sales were fueled by generic versions of Pfizer’s Lipitor cholesterol treatment and Johnson & Johnson’s Concerta attention deficit hyperactivity disorder drug.

Watson had previewed its fourth-quarter results last month at its analyst day event.

On Tuesday it projected 2012 profit in a range of $5.50 per share to $5.80 per share, excluding items. Last month, it forecast a range of $5.25 to $5.55. Analysts are looking for $5.60.

The new earnings forecast equates to an expected increase of 15 per cent to 22 per cent for this year.

Watson also boosted its full-year revenue forecast by $100m to about $5.4b. Last month, Watson said it would begin selling a generic version of Sanofi’s Lovenox blood-clot preventer after a US appeals court stayed a preliminary injunction.