Theravance Inc. (THRX): 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

Theravance ( THRX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 1.6%. By the end of trading, Theravance fell $0.63 (-1.9%) to $31.93 on average volume. Throughout the day, 1,468,889 shares of Theravance exchanged hands as compared to its average daily volume of 1,012,300 shares. The stock ranged in price between $31.58-$33.00 after having opened the day at $32.33 as compared to the previous trading day's close of $32.56. Other companies within the Health Care sector that declined today were: Aoxing Pharmaceutical Company ( AXN), down 17.6%, American Caresource Holdings ( ANCI), down 11.9%, Atossa Genetics ( ATOS), down 10.1% and LipoScience ( LPDX), down 6.6%.
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Theravance, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of small molecule medicines primarily for therapeutic areas of respiratory diseases, bacterial infections, and central nervous system (CNS)/pain. Theravance has a market cap of $2.8 billion and is part of the drugs industry. Shares are up 25.9% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Theravance as a sell. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures.

On the positive front, Vertex Pharmaceuticals ( VRTX), down 61.9%, Catalyst Pharmaceutical Partners ( CPRX), down 56.7%, Healthways ( HWAY), down 17.0% and Anacor Pharmaceuticals ( ANAC), down 13.6% , were all gainers within the health care sector with Merck ( MRK) 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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