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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 196 points (1.1%) at 17,361 as of Monday, Feb. 2, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,282 issues advancing vs. 826 declining with 107 unchanged.

The Drugs industry as a whole closed the day down 0.5% versus the S&P 500, which was up 1.3%. Top gainers within the Drugs industry included

Aoxing Pharmaceutical

(

AXN

), up 2.8%,

Merus Labs International

(

MSLI

), up 10.8%,

Auris Medical

TheStreet Recommends

(

EARS

), up 5.1%,

Parnell Pharmaceuticals Holdings

(

PARN

), up 4.8% and

Aurinia Pharmaceuticals

(

AUPH

), up 3.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Auris Medical

(

EARS

) is one of the companies that pushed the Drugs industry higher today. Auris Medical was up $0.20 (5.1%) to $4.16 on light volume. Throughout the day, 3,462 shares of Auris Medical exchanged hands as compared to its average daily volume of 10,800 shares. The stock ranged in a price between $3.82-$4.40 after having opened the day at $3.88 as compared to the previous trading day's close of $3.96.

Auris Medical has a market cap of $114.1 million and is part of the health care sector. Shares are up 1.5% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Merus Labs International

(

MSLI

) was up $0.16 (10.8%) to $1.58 on heavy volume. Throughout the day, 41,572 shares of Merus Labs International exchanged hands as compared to its average daily volume of 24,800 shares. The stock ranged in a price between $1.43-$1.59 after having opened the day at $1.43 as compared to the previous trading day's close of $1.43.

Merus Labs International Inc., a specialty pharmaceutical company, engages in the acquisition and licensing of prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $115.4 million and is part of the health care sector. Shares are down 14.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Merus Labs International a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Merus Labs International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • MERUS LABS INTERNATIONAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MERUS LABS INTERNATIONAL INC reported poor results of -$0.16 versus -$0.05 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 8483.0% when compared to the same quarter one year ago, falling from -$0.05 million to -$4.55 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, MERUS LABS INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $3.47 million or 19.13% when compared to the same quarter last year. Despite a decrease in cash flow MERUS LABS INTERNATIONAL INC is still fairing well by exceeding its industry average cash flow growth rate of -42.07%.
  • MSLI, with its decline in revenue, underperformed when compared the industry average of 13.3%. Since the same quarter one year prior, revenues fell by 34.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

Merus Labs International Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Aoxing Pharmaceutical

(

AXN

) was another company that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.01 (2.8%) to $0.37 on light volume. Throughout the day, 38,133 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 51,800 shares. The stock ranged in a price between $0.36-$0.37 after having opened the day at $0.37 as compared to the previous trading day's close of $0.36.

Aoxing Pharmaceutical Company, Inc., a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. Aoxing Pharmaceutical has a market cap of $24.5 million and is part of the health care sector. Shares are up 16.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Aoxing Pharmaceutical as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • The debt-to-equity ratio is very high at 14.68 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.19, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has declined marginally to -$2.29 million or 2.78% when compared to the same quarter last year. Despite a decrease in cash flow AOXING PHARMACEUTICAL CO INC is still fairing well by exceeding its industry average cash flow growth rate of -42.07%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, AOXING PHARMACEUTICAL CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AOXING PHARMACEUTICAL CO INC is currently very high, coming in at 72.68%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.17% is in-line with the industry average.
  • This stock has increased by 54.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AXN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here:

Aoxing Pharmaceutical Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.