3 Stocks Pushing The Drugs Industry Lower

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.

The Drugs industry as a whole closed the day down 1.1% versus the S&P 500, which was unchanged. Laggards within the Drugs industry included Aoxing Pharmaceutical ( AXN), down 3.3%, Reliv' International ( RELV), down 7.0%, Celator Pharmaceuticals ( CPXX), down 6.0%, Oragenics ( OGEN), down 3.9% and Celsus Therapeutics ( CLTX), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Celator Pharmaceuticals ( CPXX) is one of the companies that pushed the Drugs industry lower today. Celator Pharmaceuticals was down $0.16 (6.0%) to $2.53 on light volume. Throughout the day, 10,323 shares of Celator Pharmaceuticals exchanged hands as compared to its average daily volume of 20,100 shares. The stock ranged in price between $2.52-$2.70 after having opened the day at $2.69 as compared to the previous trading day's close of $2.69.

Celator Pharmaceuticals has a market cap of $67.8 million and is part of the health care sector. Shares are down 20.0% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Celator Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

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At the close, Reliv' International ( RELV) was down $0.14 (7.0%) to $1.78 on light volume. Throughout the day, 3,614 shares of Reliv' International exchanged hands as compared to its average daily volume of 15,700 shares. The stock ranged in price between $1.78-$1.85 after having opened the day at $1.84 as compared to the previous trading day's close of $1.92.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging, and healthy energy. Reliv' International has a market cap of $23.7 million and is part of the health care sector. Shares are down 33.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Reliv' International as a hold. 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. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on RELV go as follows:

  • RELV's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 80.04%. Regardless of RELV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.04% trails the industry average.
  • RELV, with its decline in revenue, underperformed when compared the industry average of 0.0%. Since the same quarter one year prior, revenues fell by 23.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Personal Products industry. The net income has significantly decreased by 177.4% when compared to the same quarter one year ago, falling from $0.20 million to -$0.15 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Personal Products industry and the overall market, RELIV INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Reliv' International Ratings Report

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Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry lower today. Aoxing Pharmaceutical was down $0.01 (3.3%) to $0.30 on light volume. Throughout the day, 15,304 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 45,100 shares. The stock ranged in price between $0.30-$0.30 after having opened the day at $0.30 as compared to the previous trading day's close of $0.30.

Aoxing Pharmaceutical Company, Inc., a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. Aoxing Pharmaceutical has a market cap of $15.0 million and is part of the health care sector. Shares are up 20.2% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Aoxing Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on AXN go as follows:

  • The debt-to-equity ratio is very high at 18.29 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.21, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, AOXING PHARMACEUTICAL CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 45.40% is the gross profit margin for AOXING PHARMACEUTICAL CO INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AXN's net profit margin of -52.66% significantly underperformed when compared to the industry average.
  • AOXING PHARMACEUTICAL CO INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AOXING PHARMACEUTICAL CO INC reported poor results of -$0.34 versus -$0.32 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 39.0% when compared to the same quarter one year prior, rising from -$2.99 million to -$1.83 million.

You can view the full analysis from the report here: Aoxing Pharmaceutical Ratings Report

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