Arena Pharmaceuticals Inc. (ARNA): Today's Featured Drugs Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Arena Pharmaceuticals ( ARNA) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Arena Pharmaceuticals fell 53 cents (-5.7%) to $8.77 on light volume. Throughout the day, 9.3 million shares of Arena Pharmaceuticals exchanged hands as compared to its average daily volume of 17.8 million shares. The stock ranged in price between $8.75-$9.24 after having opened the day at $9.24 as compared to the previous trading day's close of $9.30. Other companies within the Drugs industry that declined today were: Horizon Pharma ( HZNP), down 24%, Aoxing Pharmaceutical Company ( AXN), down 10%, Biosante Pharmaceuticals ( BPAX), down 9.2%, and Sinovac Biotech ( SVA), down 8.7%.
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Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in discovering, developing, and commercializing oral drugs that target G protein-coupled receptors in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Arena Pharmaceuticals has a market cap of $2.01 billion and is part of the health care sector. Shares are up 397.3% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Arena Pharmaceuticals a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Arena Pharmaceuticals as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

On the positive front, Cormedix ( CRMD), up 25%, AEterna Zentaris ( AEZS), up 23.1%, Cleveland BioLabs ( CBLI), up 17.8%, and Codexis ( CDXS), up 15.4%, were all gainers within the drugs industry with Novo Nordisk A/S ( NVO) being today's featured drugs industry leader.

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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