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The Drugs industry as a whole closed the day up 0.6% versus the S&P 500, which was unchanged. Laggards within the Drugs industry included Natural Alternatives International ( NAII), down 2.8%, Oragenics ( OGEN), down 5.8%, Merus Labs International ( MSLI), down 1.8%, Codexis ( CDXS), down 8.2% and Can Fite Biofarma ( CANF), down 3.0%.

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

Codexis ( CDXS) is one of the companies that pushed the Drugs industry lower today. Codexis was down $0.13 (8.2%) to $1.46 on light volume. Throughout the day, 16,367 shares of Codexis exchanged hands as compared to its average daily volume of 42,000 shares. The stock ranged in price between $1.46-$1.58 after having opened the day at $1.53 as compared to the previous trading day's close of $1.59.

Codexis, Inc. develops biocatalysts for the pharmaceutical and fine chemicals markets in the United States, Europe, and Asia. Codexis has a market cap of $58.0 million and is part of the health care sector. Shares are up 13.6% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Codexis as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CDXS go as follows:

  • 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 Chemicals industry and the overall market, CODEXIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CDXS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.20%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The revenue fell significantly faster than the industry average of 7.1%. Since the same quarter one year prior, revenues fell by 38.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CODEXIS INC has improved earnings per share by 32.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CODEXIS INC reported poor results of -$1.08 versus -$0.83 in the prior year. This year, the market expects an improvement in earnings (-$0.51 versus -$1.08).
  • 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 Chemicals industry average. The net income increased by 33.8% when compared to the same quarter one year prior, rising from -$9.62 million to -$6.38 million.

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

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At the close, Merus Labs International ( MSLI) was down $0.04 (1.8%) to $2.22 on average volume. Throughout the day, 35,651 shares of Merus Labs International exchanged hands as compared to its average daily volume of 27,800 shares. The stock ranged in price between $2.19-$2.31 after having opened the day at $2.31 as compared to the previous trading day's close of $2.26.

Merus Labs International Inc., a specialty pharmaceutical company, is engaged in the acquisition and licensing of branded prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $118.9 million and is part of the health care sector. Shares are up 58.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Merus Labs International as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • Net operating cash flow has decreased to $2.93 million or 29.74% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, MERUS LABS INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 81.89%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MSLI's net profit margin of -21.74% significantly underperformed when compared to the industry average.
  • MERUS LABS INTERNATIONAL INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MERUS LABS INTERNATIONAL INC continued to lose money by earning -$0.05 versus -$0.70 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 36.7% when compared to the same quarter one year prior, rising from -$2.30 million to -$1.46 million.

You can view the full analysis from the report here: Merus Labs International Ratings Report

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Oragenics ( OGEN) was another company that pushed the Drugs industry lower today. Oragenics was down $0.12 (5.8%) to $1.93 on light volume. Throughout the day, 22,003 shares of Oragenics exchanged hands as compared to its average daily volume of 29,800 shares. The stock ranged in price between $1.91-$2.00 after having opened the day at $2.00 as compared to the previous trading day's close of $2.05.

Oragenics, Inc. focuses on the discovery, development, and commercialization of various technologies associated with oral health, antibiotics, and other general health benefits. Oragenics has a market cap of $82.0 million and is part of the health care sector. Shares are down 27.1% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Oragenics a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Oragenics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on OGEN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Biotechnology industry. The net income has decreased by 3.2% when compared to the same quarter one year ago, dropping from -$1.59 million to -$1.64 million.
  • Net operating cash flow has declined marginally to -$1.58 million or 0.18% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • OGEN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 37.98%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ORAGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ORAGENICS INC is rather high; currently it is at 65.58%. Regardless of OGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OGEN's net profit margin of -763.25% significantly underperformed when compared to the industry average.

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

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