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 was unchanged today versus the S&P 500, which was down 1.6%. Laggards within the Drugs industry included Merus Labs International ( MSLI), down 13.2%, EntreMed ( ENMD), down 2.9%, Cyanotech ( CYAN), down 4.2%, Cellectar Biosciences ( CLRB), down 6.1% and Vermillion ( VRML), down 3.0%.

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

Cellectar Biosciences ( CLRB) is one of the companies that pushed the Drugs industry lower today. Cellectar Biosciences was down $0.13 (6.1%) to $2.00 on light volume. Throughout the day, 8,235 shares of Cellectar Biosciences exchanged hands as compared to its average daily volume of 21,100 shares. The stock ranged in price between $2.00-$2.10 after having opened the day at $2.02 as compared to the previous trading day's close of $2.13.

Cellectar Biosciences has a market cap of $6.0 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Cellectar Biosciences a buy, no analysts rate it a sell, and none rate it a hold.

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At the close, EntreMed ( ENMD) was down $0.05 (2.9%) to $1.69 on light volume. Throughout the day, 14,761 shares of EntreMed exchanged hands as compared to its average daily volume of 20,800 shares. The stock ranged in price between $1.69-$1.74 after having opened the day at $1.73 as compared to the previous trading day's close of $1.74.

EntreMed has a market cap of $47.1 million and is part of the health care sector. Shares are up 1.1% year-to-date as of the close of trading on Friday.

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Merus Labs International ( MSLI) was another company that pushed the Drugs industry lower today. Merus Labs International was down $0.19 (13.2%) to $1.25 on average volume. Throughout the day, 21,735 shares of Merus Labs International exchanged hands as compared to its average daily volume of 23,800 shares. The stock ranged in price between $1.25-$1.53 after having opened the day at $1.31 as compared to the previous trading day's close of $1.44.

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 $111.6 million and is part of the health care sector. Shares are up 0.8% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Merus Labs International as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

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Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • This stock has managed to rise its share value by 12.40% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 83.6% when compared to the same quarter one year prior, rising from -$1.05 million to -$0.17 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.0%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 80.97%. 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 -2.39% significantly underperformed when compared to the industry average.
  • 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.

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

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