Alexion Pharmaceuticals Inc. (ALXN): 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.

Alexion Pharmaceuticals ( ALXN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Alexion Pharmaceuticals fell $1.29 (-1.1%) to $112.92 on light volume. Throughout the day, 737,086 shares of Alexion Pharmaceuticals exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $112.59-$114.70 after having opened the day at $114.18 as compared to the previous trading day's close of $114.21. Other companies within the Drugs industry that declined today were: Peregrine Pharmaceuticals ( PPHM), down 78.5%, Questcor Pharmaceuticals ( QCOR), down 36.7%, MEI Pharma ( MEIP), down 17.6%, and Aoxing Pharmaceutical Company ( AXN), down 11.1%.
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Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Alexion Pharmaceuticals has a market cap of $21.96 billion and is part of the health care sector. The company has a P/E ratio of 112.6, below the average drugs industry P/E ratio of 113.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 59.1% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Alexion Pharmaceuticals 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, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Skystar Bio-Pharmaceutical Company ( SKBI), up 19.7%, Savient Pharmaceuticals ( SVNT), up 16.8%, Prima Biomed Ltd. ADR ( PBMD), up 11.5%, and Insmed ( INSM), up 10.1%, were all gainers within the drugs industry with Amgen ( AMGN) 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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