The shares of Watson Pharmaceuticals Inc. (WPI:US) fell 6.1 percent, the biggest drop in almost four months, after the company's earnings missed estimates and an analyst downgraded the stock.
The shares fell by $1.71 to $26.36 at 4:31 p.m. in New York Stock Exchange composite trading. The decline is the biggest since shares fell 6.4 percent on Nov. 8, after a previous earnings report.
Roth Capital Partners cut the stock to ``hold'' from ``buy'' after the company, the biggest U.S. maker of generic drugs, issued its earnings report. Wachovia Capital Markets LLC lowered its earnings forecast for the company this year to $1.21 a share from $1.49, citing lower distribution revenue and higher expenses.
Watson, based in Corona, California, yesterday reported fourth-quarter earnings of 25 cents a share, excluding special items, compared with the 29 cent average in a Bloomberg survey of 15 analysts.
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