Valeant Pharmaceuticals International Inc (VRX): 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.

Valeant Pharmaceuticals International ( VRX) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Valeant Pharmaceuticals International fell 58 cents (-1%) to $55.11 on average volume. Throughout the day, two million shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $55.08-$56.30 after having opened the day at $55.84 as compared to the previous trading day's close of $55.69. Other companies within the Drugs industry that declined today were: Skystar Bio-Pharmaceutical Company ( SKBI), down 14.1%, Vivus ( VVUS), down 11.5%, Cyclacel Pharmaceuticals ( CYCC), down 10.7%, and Cormedix ( CRMD), down 8.6%.
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Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $16.92 billion and is part of the health care sector. The company has a P/E ratio of 293.1, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Valeant Pharmaceuticals International a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.

On the positive front, MEI Pharma ( MEIP), up 34%, Halozyme Therapeutics ( HALO), up 24%, Supernus Pharmaceuticals ( SUPN), up 18.5%, and Columbia Laboratories ( CBRX), up 17.5%, were all gainers within the drugs industry with Bristol-Myers Squibb Company ( BMY) 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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