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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.

The Drugs industry as a whole closed the day up 1.1% versus the S&P 500, which was down 0.8%. Laggards within the Drugs industry included

China Pharma

(

CPHI

), down 4.3%,

Prima Biomed

(

PBMD

), down 3.0%,

Merus Labs International

(

MSLI

), down 9.2%,

Novogen

(

TheStreet Recommends

NVGN

), down 6.7% and

Cellectar Biosciences

(

CLRB

), down 3.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Cellectar Biosciences

(

CLRB

) is one of the companies that pushed the Drugs industry lower today. Cellectar Biosciences was down $0.08 (3.8%) to $2.00 on light volume. Throughout the day, 4,154 shares of Cellectar Biosciences exchanged hands as compared to its average daily volume of 22,300 shares. The stock ranged in price between $1.99-$2.05 after having opened the day at $1.99 as compared to the previous trading day's close of $2.08.

Cellectar Biosciences has a market cap of $5.7 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Cellectar Biosciences a buy, no analysts rate it a sell, and none rate it a hold.

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At the close,

Merus Labs International

(

MSLI

) was down $0.12 (9.2%) to $1.24 on heavy volume. Throughout the day, 92,976 shares of Merus Labs International exchanged hands as compared to its average daily volume of 22,400 shares. The stock ranged in price between $1.15-$1.35 after having opened the day at $1.35 as compared to the previous trading day's close of $1.36.

Merus Labs International Inc., a specialty pharmaceutical company, is engaged in the acquisition and licensing of branded prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $96.2 million and is part of the health care sector. Shares are down 12.5% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Merus Labs International

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • This stock has managed to rise its share value by 12.40% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 83.6% when compared to the same quarter one year prior, rising from -$1.05 million to -$0.17 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.0%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 80.97%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MSLI's net profit margin of -2.39% significantly underperformed when compared to the industry average.
  • 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, MERUS LABS INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Merus Labs International Ratings Report

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China Pharma

(

CPHI

) was another company that pushed the Drugs industry lower today. China Pharma was down $0.01 (4.3%) to $0.22 on light volume. Throughout the day, 23,437 shares of China Pharma exchanged hands as compared to its average daily volume of 43,100 shares. The stock ranged in price between $0.22-$0.22 after having opened the day at $0.22 as compared to the previous trading day's close of $0.23.

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People's Republic of China. China Pharma has a market cap of $10.5 million and is part of the health care sector. Shares are down 30.4% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

China Pharma

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, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on CPHI go as follows:

  • CHINA PHARMA HOLDINGS 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA PHARMA HOLDINGS INC swung to a loss, reporting -$0.45 versus $0.10 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 93.6% when compared to the same quarter one year ago, falling from -$4.46 million to -$8.64 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, CHINA PHARMA HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.08 million or 103.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of CHINA PHARMA HOLDINGS INC has not done very well: it is down 7.70% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here:

China Pharma 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.