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 0.2%. By the end of trading, Alexion Pharmaceuticals fell $7.38 (-7.3%) to $93.56 on heavy volume. Throughout the day, 4.6 million shares of Alexion Pharmaceuticals exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $93.33-$101.97 after having opened the day at $101.09 as compared to the previous trading day's close of $100.94. Other companies within the Drugs industry that declined today were: United Therapeutics Corporation ( UTHR), down 15.6%, ARCA biopharma ( ABIO), down 13.3%, MEI Pharma ( MEIP), down 11.9%, and Zogenix ( ZGNX), down 8.7%.
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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 $20.08 billion and is part of the health care sector. The company has a P/E ratio of 103, below the average drugs industry P/E ratio of 104 and above the S&P 500 P/E ratio of 17.7. Shares are up 41.2% 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 four 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 positive front, Columbia Laboratories ( CBRX), up 17.5%, Amyris ( AMRS), up 16.4%, Oxygen Biotherapeutics ( OXBT), up 16.3%, and Cyclacel Pharmaceuticals ( CYCC), up 9.4%, were all gainers within the drugs industry with Regeneron Pharmaceuticals ( REGN) 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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