Vivus (VVUS): 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.

Vivus ( VVUS) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Vivus fell 59 cents (-4.5%) to $12.39 on average volume. Throughout the day, five million shares of Vivus exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in price between $12.30-$13.02 after having opened the day at $12.99 as compared to the previous trading day's close of $12.98. Other companies within the Drugs industry that declined today were: TrovaGene ( TROV), down 13.2%, Anthera Pharmaceuticals ( ANTH), down 10.5%, MEI Pharma ( MEIP), down 8.3%, and Arrowhead Research Corporation ( ARWR), down 7%.
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VIVUS, Inc., a biopharmaceutical company, is developing therapies to address obesity, sleep apnea, diabetes, and male sexual health. Its lead investigational product, Qnexa, has completed Phase three clinical trials for the treatment of obesity. Vivus has a market cap of $1.34 billion and is part of the health care sector. Shares are up 1.6% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Vivus a buy, two analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Vivus as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.

On the positive front, Sarepta Therapeutics ( SRPT), up 14.4%, DARA Biosciences ( DARA), up 9.3%, Cyclacel Pharmaceuticals ( CYCC), up 9.1%, and Apricus Biosciences ( APRI), up 9%, were all gainers within the drugs industry with Merck ( MRK) 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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