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 Reliv' International ( RELV), down 4.8%, VBI Vaccines ( VBIV), down 2.1%, Aradigm ( ARDM), down 2.5%, Cyanotech ( CYAN), down 2.9% and Innocoll ( INNL), down 4.1%.

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

Aradigm ( ARDM) is one of the companies that pushed the Drugs industry lower today. Aradigm was down $0.18 (2.5%) to $7.22 on light volume. Throughout the day, 1,008 shares of Aradigm exchanged hands as compared to its average daily volume of 4,800 shares. The stock ranged in price between $7.21-$7.40 after having opened the day at $7.22 as compared to the previous trading day's close of $7.40.

Aradigm Corporation, a specialty pharmaceutical company, focuses on the development and commercialization of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases. Aradigm has a market cap of $109.1 million and is part of the health care sector. Shares are down 2.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Aradigm a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on ARDM 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 Pharmaceuticals industry. The net income has significantly decreased by 115.0% when compared to the same quarter one year ago, falling from $7.76 million to -$1.16 million.
  • The share price of ARADIGM CORP has not done very well: it is down 12.59% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • ARADIGM CORP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ARADIGM CORP turned its bottom line around by earning $0.19 versus -$2.40 in the prior year. For the next year, the market is expecting a contraction of 447.4% in earnings (-$0.66 versus $0.19).
  • 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, ARADIGM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 109.21% to $0.58 million when compared to the same quarter last year. In addition, ARADIGM CORP has also vastly surpassed the industry average cash flow growth rate of -29.18%.

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

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At the close, VBI Vaccines ( VBIV) was down $0.05 (2.1%) to $2.35 on average volume. Throughout the day, 4,500 shares of VBI Vaccines exchanged hands as compared to its average daily volume of 5,100 shares. The stock ranged in price between $2.35-$2.40 after having opened the day at $2.40 as compared to the previous trading day's close of $2.40.

VBI Vaccines has a market cap of $48.1 million and is part of the health care sector. Shares are down 27.9% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates VBI Vaccines a buy, no analysts rate it a sell, and none rate it a hold.

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Reliv' International ( RELV) was another company that pushed the Drugs industry lower today. Reliv' International was down $0.06 (4.8%) to $1.20 on average volume. Throughout the day, 10,414 shares of Reliv' International exchanged hands as compared to its average daily volume of 8,900 shares. The stock ranged in price between $1.20-$1.28 after having opened the day at $1.28 as compared to the previous trading day's close of $1.26.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, wellness needs, weight management, and sports nutrition. Reliv' International has a market cap of $15.8 million and is part of the health care sector. Shares are up 7.7% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

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Highlights from TheStreet Ratings analysis on RELV go as follows:

  • RELV's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RELV's debt-to-equity ratio is very low at 0.24 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 0.90 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Personal Products industry and the overall market, RELIV INTERNATIONAL INC's return on equity is below that of both the industry average and the S&P 500.
  • RELV has underperformed the S&P 500 Index, declining 6.07% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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

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