Watson Pharmaceuticals Plummets After Posting Third-Quarter Loss

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Watson Pharmaceuticals

(WPI)

was plunging in the premarket after reporting a loss of $58.6 million, or 55 cents a share, in its third quarter, including various charges, and saying it would realign its business away from generic drugs.

The Corona, Calif., drugmaker said that prior to asset-impairment charges and inventory write-downs, it earned $37.8 million, or 35 cents a share, in the quarter, while on a "cash" basis it earned 46 cents a share.

Watson said it will spend $135 million to develop its own pharmaceuticals and move away from generic drugs.

The company expects to earn 35 cents to 38 cents per share in the fourth quarter, or 46 cents to 49 cents a share on a cash basis, on revenue of $260 million to $275 million. Its shares were recently losing $7.15, or 15%, to $40 on Instinet.