Biogen Idec Inc (BIIB): 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

Biogen Idec ( BIIB) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Biogen Idec fell $2.44 (-1.1%) to $212.76 on average volume. Throughout the day, 1,947,648 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1,396,000 shares. The stock ranged in price between $211.23-$217.80 after having opened the day at $216.88 as compared to the previous trading day's close of $215.20. Other companies within the Drugs industry that declined today were: Biota Pharmaceuticals ( BOTA), down 61.1%, iBio ( IBIO), down 13.5%, Catalyst Pharmaceutical Partners ( CPRX), down 13.2% and ARCA biopharma ( ABIO), down 11.0%.
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Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $48.0 billion and is part of the health care sector. The company has a P/E ratio of 35.3, above the S&P 500 P/E ratio of 17.7. Shares are up 38.9% year to date as of the close of trading on Monday.

TheStreet Ratings rates Biogen Idec as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Sucampo Pharmaceuticals Inc. A ( SCMP), down 24.1%, Celsion Corporation ( CLSN), down 15.0%, Oramed Pharmaceuticals ( ORMP), down 13.6% and Illumina ( ILMN), down 13.3% , were all gainers within the drugs industry with AstraZeneca ( AZN) 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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