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 down 0.2%. By the end of trading, Biogen Idec fell $4.68 (-2.1%) to $218.93 on average volume. Throughout the day, 1,572,230 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1,435,100 shares. The stock ranged in price between $218.21-$226.18 after having opened the day at $223.94 as compared to the previous trading day's close of $223.61. Other companies within the Drugs industry that declined today were: Delcath Systems ( DCTH), down 40.1%, AVEO Pharmaceuticals ( AVEO), down 31.3%, Neostem ( NBS), down 20.6% and Cormedix ( CRMD), down 16.8%.
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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 $51.0 billion and is part of the health care sector. The company has a P/E ratio of 34.3, above the S&P 500 P/E ratio of 17.7. Shares are up 47.6% 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, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Transition Therapeutics ( TTHI), down 37.8%, Pain Therapeutics ( PTIE), down 26.0%, Durect Corporation ( DRRX), down 25.6% and Bacterin International Holdings ( BONE), down 18.1% , were all gainers within the drugs industry with Herbalife ( HLF) 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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