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The Drugs industry as a whole closed the day down 0.1% versus the S&P 500, which was up 0.2%. Laggards within the Drugs industry included XTL Biopharmaceuticals ( XTLB), down 4.4%, Aoxing Pharmaceutical ( AXN), down 4.5%, Merus Labs International ( MSLI), down 3.6%, Tianyin Pharmaceutical ( TPI), down 12.5% and Innocoll AG ADR ( INNL), down 3.0%.

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

Merus Labs International ( MSLI) is one of the companies that pushed the Drugs industry lower today. Merus Labs International was down $0.05 (3.6%) to $1.35 on average volume. Throughout the day, 18,953 shares of Merus Labs International exchanged hands as compared to its average daily volume of 24,800 shares. The stock ranged in price between $1.35-$1.42 after having opened the day at $1.39 as compared to the previous trading day's close of $1.40.

Merus Labs International Inc., a specialty pharmaceutical company, engages in the acquisition and licensing of prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $113.7 million and is part of the health care sector. Shares are down 15.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Merus Labs International as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • MERUS LABS INTERNATIONAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MERUS LABS INTERNATIONAL INC reported poor results of -$0.16 versus -$0.05 in the prior year.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 8483.0% when compared to the same quarter one year ago, falling from -$0.05 million to -$4.55 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 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.
  • Net operating cash flow has decreased to $3.47 million or 19.13% when compared to the same quarter last year. Despite a decrease in cash flow of 19.13%, MERUS LABS INTERNATIONAL INC is in line with the industry average cash flow growth rate of -19.21%.
  • MSLI, with its decline in revenue, underperformed when compared the industry average of 8.7%. Since the same quarter one year prior, revenues fell by 34.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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

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At the close, Aoxing Pharmaceutical ( AXN) was down $0.02 (4.5%) to $0.32 on light volume. Throughout the day, 31,670 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 73,400 shares. The stock ranged in price between $0.29-$0.32 after having opened the day at $0.30 as compared to the previous trading day's close of $0.34.

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 $22.2 million and is part of the health care sector. Shares are up 5.5% year-to-date as of the close of trading on Friday.

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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 weak operating cash flow.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • The debt-to-equity ratio is very high at 14.68 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 0.19, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has declined marginally to -$2.29 million or 2.78% when compared to the same quarter last year. Despite a decrease in cash flow AOXING PHARMACEUTICAL CO INC is still fairing well by exceeding its industry average cash flow growth rate of -19.21%.
  • 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, AOXING PHARMACEUTICAL CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AOXING PHARMACEUTICAL CO INC is currently very high, coming in at 72.68%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.17% is in-line with the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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XTL Biopharmaceuticals ( XTLB) was another company that pushed the Drugs industry lower today. XTL Biopharmaceuticals was down $0.09 (4.4%) to $1.94 on light volume. Throughout the day, 1,920 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 11,500 shares. The stock ranged in price between $1.94-$2.06 after having opened the day at $1.95 as compared to the previous trading day's close of $2.03.

XTL Biopharmaceuticals Ltd., a biopharmaceutical company, is engaged in the acquisition and development of pharmaceutical products for the treatment of unmet medical needs. XTL Biopharmaceuticals has a market cap of $23.6 million and is part of the health care sector. Shares are up 2.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate XTL Biopharmaceuticals a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates XTL Biopharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on XTLB go as follows:

  • XTL BIOPHARMACEUTICALS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, XTL BIOPHARMACEUTICALS reported poor results of -$0.22 versus -$0.13 in the prior year.
  • 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 Biotechnology industry. The net income has significantly decreased by 192.9% when compared to the same quarter one year ago, falling from $0.55 million to -$0.51 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 Biotechnology industry and the overall market, XTL BIOPHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 32.11%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% 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.
  • The gross profit margin for XTL BIOPHARMACEUTICALS is rather high; currently it is at 61.67%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, XTLB's net profit margin of -177.70% significantly underperformed when compared to the industry average.

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

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