Akorn Inc. (AKRX): Today's Featured Drugs Loser

Akorn ( AKRX) pushed the Drugs industry lower today making it today's featured Drugs loser. The industry as a whole closed the day up 1.5%. By the end of trading, Akorn fell 16 cents (-1.1%) to $13.98 on average volume. Throughout the day, 1.6 million shares of Akorn exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $13.72-$14.50 after having opened the day at $14.24 as compared to the previous trading day's close of $14.14. Other company's within the Drugs industry that declined today were: Marshall Edwards ( MSHL), down 17.9%, Prima Biomed Ltd. ADR ( PBMD), down 9.1%, Rosetta Genomics ( ROSG), down 8.3%, and Senesco Technologies ( SNT), down 7.5%.

Akorn, Inc. engages in the manufacture and marketing of diagnostic and therapeutic ophthalmic pharmaceuticals products, niche hospital drugs, and injectable pharmaceuticals in the United States and internationally. Akorn has a market cap of $1.32 billion and is part of the health care sector. The company has a P/E ratio of 32.2, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 24.6% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Akorn a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Akorn as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, AVI BioPharma ( AVII), up 12.3%, StemCells ( STEM), up 11.7%, Biocryst Pharmaceuticals ( BCRX), up 11.6%, and Cormedix ( CRMD), up 11%, were all gainers within the drugs industry with Pfizer ( PFE) being today's featured drugs industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).
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