3 Drugs Stocks Dragging The Industry Down

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 70 points (0.5%) at 14,846 as of Wednesday, Aug. 28, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,865 issues advancing vs. 1,062 declining with 104 unchanged.

The Drugs industry currently sits up 0.5% versus the S&P 500, which is up 0.6%. Top gainers within the industry include Vertex Pharmaceuticals ( VRTX), up 1.6%, Valeant Pharmaceuticals International ( VRX), up 1.1%, Alexion Pharmaceuticals ( ALXN), up 1.1% and Eli Lilly and Company ( LLY), up 0.6%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. Novo Nordisk A/S ( NVO) is one of the companies pushing the Drugs industry lower today. As of noon trading, Novo Nordisk A/S is down $1.45 (-0.8%) to $171.12 on light volume. Thus far, 88,975 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 299,700 shares. The stock has ranged in price between $170.25-$171.91 after having opened the day at $171.45 as compared to the previous trading day's close of $172.57.

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $95.6 billion and is part of the health care sector. Shares are up 5.7% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Novo Nordisk A/S a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Novo Nordisk A/S Ratings Report now.

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

2. As of noon trading, Sanofi ( SNY) is down $0.56 (-1.1%) to $48.99 on heavy volume. Thus far, 6.2 million shares of Sanofi exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $48.87-$49.40 after having opened the day at $49.34 as compared to the previous trading day's close of $49.55.

Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. Sanofi has a market cap of $135.3 billion and is part of the health care sector. Shares are up 4.6% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Sanofi a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Sanofi Ratings Report now.

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

1. As of noon trading, Novartis ( NVS) is down $0.75 (-1.0%) to $73.54 on average volume. Thus far, 692,990 shares of Novartis exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $73.16-$73.60 after having opened the day at $73.35 as compared to the previous trading day's close of $74.29.

Novartis AG engages in the research, development, manufacture, and marketing of a range of healthcare products worldwide. Novartis has a market cap of $183.8 billion and is part of the health care sector. Shares are up 17.4% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Novartis a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Novartis as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Novartis Ratings Report now.

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

If you are interested in one of these 5 stocks, 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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