The Drugs industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.9%. Laggards within the Drugs industry included Tianyin Pharmaceutical ( TPI), down 6.7%, Reliv' International ( RELV), down 3.0%, BioPharmX ( BPMX), down 8.5%, Alexza Pharmaceuticals ( ALXA), down 3.5% and ProPhase Labs ( PRPH), down 2.5%.

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

Grifols ( GRFS) is one of the companies that pushed the Drugs industry lower today. Grifols was down $0.76 (2.3%) to $31.86 on light volume. Throughout the day, 230,866 shares of Grifols exchanged hands as compared to its average daily volume of 356,800 shares. The stock ranged in price between $31.72-$32.45 after having opened the day at $32.28 as compared to the previous trading day's close of $32.62.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes plasma derivative products in the United States, Canada, Spain, rest of the European Union, and internationally. Grifols has a market cap of $11.0 billion and is part of the health care sector. Shares are down 4.0% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Grifols a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Grifols as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on GRFS go as follows:

  • GRIFOLS SA's earnings per share declined by 14.6% 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, GRIFOLS SA increased its bottom line by earning $1.66 versus $1.39 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.66).
  • GRFS, with its decline in revenue, underperformed when compared the industry average of 8.3%. Since the same quarter one year prior, revenues fell by 11.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for GRIFOLS SA is rather high; currently it is at 52.25%. Regardless of GRFS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GRFS's net profit margin of 14.14% is significantly lower than the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, GRFS has underperformed the S&P 500 Index, declining 6.93% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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

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At the close, Alexza Pharmaceuticals ( ALXA) was down $0.04 (3.5%) to $1.11 on average volume. Throughout the day, 55,506 shares of Alexza Pharmaceuticals exchanged hands as compared to its average daily volume of 50,500 shares. The stock ranged in price between $1.01-$1.18 after having opened the day at $1.16 as compared to the previous trading day's close of $1.15.

Alexza Pharmaceuticals, Inc., a pharmaceutical company, focuses on the research, development, and commercialization of proprietary products for the acute treatment of central nervous system conditions worldwide. Alexza Pharmaceuticals has a market cap of $21.4 million and is part of the health care sector. Shares are down 22.8% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Alexza Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

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

Highlights from TheStreet Ratings analysis on ALXA go as follows:

  • Net operating cash flow has decreased to -$12.73 million or 14.20% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ALEXZA PHARMACTCLS INC has marginally lower results.
  • ALXA'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 70.68%, 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.
  • ALXA, with its very weak revenue results, has greatly underperformed against the industry average of 6.8%. Since the same quarter one year prior, revenues plummeted by 67.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ALEXZA PHARMACTCLS 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ALEXZA PHARMACTCLS INC continued to lose money by earning -$2.08 versus -$2.41 in the prior year. This year, the market expects an improvement in earnings (-$1.80 versus -$2.08).
  • 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 96.2% when compared to the same quarter one year prior, rising from -$10.74 million to -$0.40 million.

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

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Reliv' International ( RELV) was another company that pushed the Drugs industry lower today. Reliv' International was down $0.03 (3.0%) to $0.96 on heavy volume. Throughout the day, 19,814 shares of Reliv' International exchanged hands as compared to its average daily volume of 11,300 shares. The stock ranged in price between $0.95-$1.10 after having opened the day at $1.07 as compared to the previous trading day's close of $0.99.

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 $13.1 million and is part of the health care sector. Shares are down 15.4% 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 2.1%. 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 14.51% 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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