Question-and-Answer Session
Operator
(Operator instructions) We’ll pause for just a moment to compile the Q&A roster. Your question comes from Greg Gilbert with Bank of America.
Paul Bisaro
Hey, Greg.
Greg Gilbert – Bank of America
Hey, thanks. Good morning. Paul, you slipped in a comment about pricing improving, given the importance to the industry and the fact that we haven’t heard that type of thing for a few years, can you put a little more meat on the bone as to what some of the factors are that may be stabilizing or at least improving the erosion rate for the industry, and for Watson particular, in ’09 versus ’08?
Paul Bisaro
Well, I think there are a number of factors, Greg. I think one factor is the industry consolidation, of course, that does affect the pricing stability. I would also say that there’s unfortunately a number of competitors of ours have faced some troubles with the FDA and had other troubles. That’s also led to stability. And I think, finally, the – I guess, perhaps, the way to describe it is a slowdown in the approval of that of the FDA due to their backlog and basically overworked and under-funded activities there has led to fewer approvals. So all those things lead to probably more stability than we’ve seen in the past.
Greg Gilbert – Bank of America
So you could probably – you might be able to do better than minus 10, but you’re being just conservative for now. Is that the message?
Paul Bisaro
Well, I think, we’d use 10% erosion for the last few years. We’ve been very comfortable with that. And we did that this year as well. And, yes, we may be a little conservative here, but it’s probably prudent.
Greg Gilbert – Bank of America
Okay. Secondly, if Ferrlecit goes generic, will you lose the contribution after this year? Can you grow earnings per share next year?
Paul Bisaro
I believe we can, Greg. We’ve got a lot of great opportunities in the pipeline on both the brand and the generic sides. And we haven’t even begun to put our cash to work yet in ways that we can. So I do think we will continue to grow earnings, and it’s certainly our – my expectation that we’ll grow earnings year-over-year. And it’s my target that we do that at a low double-digit rate like we did this year, 10%.
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