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The Drugs industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.1%. Laggards within the Drugs industry included CymaBay Therapeutics ( CYMA), down 2.2%, Aoxing Pharmaceutical ( AXN), down 7.0%, Vermillion ( VRML), down 2.7%, Cellectar Biosciences ( CLRB), down 6.1% and Sophiris Bio ( SPHS), down 1.7%.

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 $0.16 (6.1%) to $2.48 on average volume. Throughout the day, 18,700 shares of Cellectar Biosciences exchanged hands as compared to its average daily volume of 20,000 shares. The stock ranged in price between $2.40-$2.66 after having opened the day at $2.66 as compared to the previous trading day's close of $2.64.

Cellectar Biosciences has a market cap of $20.4 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Wednesday. 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, Vermillion ( VRML) was down $0.04 (2.7%) to $1.46 on heavy volume. Throughout the day, 118,433 shares of Vermillion exchanged hands as compared to its average daily volume of 26,900 shares. The stock ranged in price between $1.30-$1.50 after having opened the day at $1.50 as compared to the previous trading day's close of $1.50.

Vermillion, Inc., together with its subsidiaries, is engaged in the discovery, development, and commercialization of diagnostic tests that help physicians diagnose, treat, and enhance outcomes for patients. It develops diagnostic tests in the fields of oncology and women's health. Vermillion has a market cap of $49.4 million and is part of the health care sector. Shares are down 36.4% year-to-date as of the close of trading on Wednesday.

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

Highlights from TheStreet Ratings analysis on VRML go as follows:

  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 162.4% when compared to the same quarter one year ago, falling from -$2.12 million to -$5.56 million.
  • 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 Health Care Equipment & Supplies industry and the overall market, VERMILLION INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.75 million or 117.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.91%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 36.36% compared to the year-earlier 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.
  • VERMILLION INC's earnings per share declined by 36.4% 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, VERMILLION INC continued to lose money by earning -$0.45 versus -$0.47 in the prior year.

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

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Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry lower today. Aoxing Pharmaceutical was down $0.02 (7.0%) to $0.20 on light volume. Throughout the day, 21,017 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 70,800 shares. The stock ranged in price between $0.20-$0.22 after having opened the day at $0.22 as compared to the previous trading day's close of $0.22.

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 $13.5 million and is part of the health care sector. Shares are down 18.3% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Aoxing Pharmaceutical as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on AXN go as follows:

  • AXN has underperformed the S&P 500 Index, declining 10.72% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for AOXING PHARMACEUTICAL CO INC is rather high; currently it is at 58.33%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -71.80% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 68.38% to -$0.56 million when compared to the same quarter last year. In addition, AOXING PHARMACEUTICAL CO INC has also vastly surpassed the industry average cash flow growth rate of -19.99%.
  • AOXING PHARMACEUTICAL CO INC reported significant earnings per share improvement 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 two years. During the past fiscal year, AOXING PHARMACEUTICAL CO INC continued to lose money by earning -$0.16 versus -$0.34 in the prior year.
  • 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 78.4% when compared to the same quarter one year prior, rising from -$10.78 million to -$2.33 million.

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

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