Alexion Pharmaceuticals Inc. (ALXN): Today's Featured Drugs Winner

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 higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.7%. By the end of trading, Alexion Pharmaceuticals rose $2.85 (2.5%) to $114.59 on average volume. Throughout the day, 846,015 shares of Alexion Pharmaceuticals exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $111.42-$115.06 after having opened the day at $111.42 as compared to the previous trading day's close of $111.74. Other companies within the Drugs industry that increased today were: Peregrine Pharmaceuticals ( PPHM), up 24.3%, Prana Biotechnology ( PRAN), up 18.9%, InterMune ( ITMN), up 16.3%, and Zalicus ( ZLCS), up 9.8%.
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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 $21.51 billion and is part of the health care sector. The company has a P/E ratio of 110.3, below the average drugs industry P/E ratio of 111.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 56.3% year to date as of the close of trading on Tuesday. Currently there are 15 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, increase in net income, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, CytRx Corporation ( CYTR), down 11.7%, MEI Pharma ( MEIP), down 9.5%, Inovio Pharmaceuticals ( INO), down 8.7%, and Aoxing Pharmaceutical Company ( AXN), down 7.9%, were all laggards within the drugs industry with GlaxoSmithKline ( GSK) being today's drugs industry laggard.

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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