Cecil-based generic drug maker Mylan Inc. yesterday reported a $1.38 billion loss for the quarter ended Dec. 31 and announced a restructuring that includes shrinking operations, selling the rights to its hypertension drug and the possible sale of its Dey speciality pharmaceuticals business acquired in October with the $6.8 billion purchase of Merck KGaA's generic unit.

The loss, which amounted to $5.04 per diluted share, reflects one-time charges related to the Merck acquisition as well as the January 2007 purchase of Matrix Laboratories of India.

Without the charges, Mylan earned 11 cents a share, beating analysts' forecasts. A year earlier, the company earned $135.4 million, or 63 cents a share.

Acquisitions resulted in a nearly threefold increase in revenue to $1.16 billion for the quarter. Excluding the $793.5 million contributed by Merck's generic business and Matrix, revenue fell 9 percent.

Mylan is switching to a calendar year basis for reporting earnings, so it did not number the quarter. The same period last year was the company's third fiscal quarter.

The results, the first quarterly report to include the Merck unit, were released after the close of the stock market. Shares closed yesterday at $13.15, down 12 cents, but tumbled in after-hours trading to a new 52-week low, dipping below $12 a share.

Mylan shares, which were trading in the $21 range a year ago, have sunk steadily since the Merck transaction was announced last May as investors worried that Mylan overpaid for the company and could stumble swallowing a business twice its size.

Mylan said yesterday it would receive a cash payment of $370 million for selling the rights to Nebivolol to Forest Laboratories in New York. Mylan will continue to receive royalties from sales of the hypertension drug through 2010.

Mylan also announced plans to discontinue manufacturing or research operations at plants in Canada, Puerto Rico, Ireland, Spain and the United Kingdom.

Chief Executive Officer Robert J. Coury said the company would consider strategic alternatives for Dey, which is based in Napa, Calif., and specializes in drugs for respiratory ailments and allergies.

"We believe that our resources would be better allocated toward our core generics business," he said.

Mr. Coury told analysts he was pleased with what he called a strong quarterly performance.

"Our core business around the world is performing extremely well," he said during a 5 p.m. conference call.

Chief Operating Officer Heather Bresch said Mylan was on track to meet or exceed its target of producing $300 million in annual savings by 2010 through synergies with Merck. The first $100 million in savings should come in 2008, she said.

Analysts did not ask any questions about the controversy surrounding Ms. Bresch's graduate degree from West Virginia University. And neither Mr. Coury nor Ms. Bresch brought up the issue.

A five-member panel appointed by WVU is investigating whether Ms. Bresch earned the master's of business administration degree in December 1998 as she claims. The panel's report is not expected for at least several weeks.

The probe was launched in the wake of a Dec. 21 Pittsburgh Post-Gazette article that raised questions about how university officials went about granting the M.B.A. in October, nearly a decade after Ms. Bresch left the program, despite university records that showed she had finished only 26 of the 48 credits required.

Ms. Bresch, daughter of West Virginia Gov. Joe Manchin, is a longtime friend and former business associate of WVU President Michael Garrison. Mylan's chairman, Milan Puskar, is WVU's biggest benefactor.