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 27 cents (-2.3%) to $11.27 on light volume. Throughout the day, 1.7 million shares of Vivus exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $11.12-$11.59 after having opened the day at $11.54 as compared to the previous trading day's close of $11.54. Other companies within the Drugs industry that declined today were:
Arrowhead Research Corporation (
ARWR), down 9.9%,
Delcath Systems (
DCTH), down 8.3%,
Durata Therapeutics (
DRTX), down 8.1%, and
Redhill Biopharma (
RDHL), down 6.8%.
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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 $1.18 billion and is part of the health care sector. Shares are down 14% year to date as of the close of trading on Wednesday. Currently there are seven 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
On the positive front,
ARCA biopharma (
ABIO), up 38.7%,
Sinovac Biotech (
SVA), up 17.9%,
Sarepta Therapeutics (
SRPT), up 7.6%, and
Oxygen Biotherapeutics (
OXBT), up 6.8%, were all gainers within the drugs industry with
GlaxoSmithKline (
GSK) 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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