Medivation Inc. (MDVN): Today's Featured Health Care 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.

Medivation ( MDVN) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Medivation fell $1.15 (-2.4%) to $46.26 on average volume. Throughout the day, one million shares of Medivation exchanged hands as compared to its average daily volume of 943,800 shares. The stock ranged in price between $45.97-$48.01 after having opened the day at $47.81 as compared to the previous trading day's close of $47.41. Other companies within the Health Care sector that declined today were: Vivus ( VVUS), down 20.9%, Anthera Pharmaceuticals ( ANTH), down 19.7%, Cambrex Corporation ( CBM), down 16.3%, and Oxygen Biotherapeutics ( OXBT), down 12.7%.
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Medivation, Inc., a biopharmaceutical company, focuses on developing novel small molecule drugs for the treatment of serious diseases in the United States and Europe. Medivation has a market cap of $3.5 billion and is part of the drugs industry. The company has a P/E ratio of -128.4, below the S&P 500 P/E ratio of 17.7. Shares are up 106% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Medivation a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Medivation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, generally higher debt management risk and feeble growth in the company's earnings per share.

On the positive front, Novogen ( NVGN), up 74.6%, MEI Pharma ( MEIP), up 61.4%, Graymark Healthcare ( GRMH), up 25%, and Rosetta Genomics ( ROSG), up 17.3%, were all gainers within the health care sector with Questcor Pharmaceuticals ( QCOR) being today's featured health care sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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