Theravance Inc. (THRX): 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

Theravance ( THRX) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Theravance fell $0.43 (-1.2%) to $35.38 on average volume. Throughout the day, 1,545,684 shares of Theravance exchanged hands as compared to its average daily volume of 1,601,400 shares. The stock ranged in price between $34.94-$36.21 after having opened the day at $35.82 as compared to the previous trading day's close of $35.81. Other companies within the Drugs industry that declined today were: Dynavax Technologies Corporation ( DVAX), down 13.0%, Rexahn Pharmaceuticals ( RNN), down 12.8%, Echo Therapeutics ( ECTE), down 12.7% and Cornerstone Therapeutics ( CRTX), down 11.4%.
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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 $3.6 billion and is part of the health care sector. Shares are up 63.4% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Theravance a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Theravance as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk and feeble growth in its earnings per share.

On the positive front, Verastem ( VSTM), down 13.9%, Savient Pharmaceuticals ( SVNT), down 12.7%, Delcath Systems ( DCTH), down 10.6% and Rosetta Genomics ( ROSG), down 7.3% , were all gainers within the drugs industry with Pfizer ( PFE) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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