Stocks in the Drugs Industry Under Pressure

Strategic Insights -

The stocks in the drugs industry are experiencing a downturn in the market, with the Dow Jones Industrial Average down 0.7% as of Monday, Oct. 12, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,447 issues advancing vs. 1,507 declining with 153 unchanged. Regeneron Pharmaceuticals, Vertex Pharmaceuticals, Novo Nordisk A/S, and Sanofi are among the top gainers in the industry, while Eli Lilly and, Valeant Pharmaceuticals International, and Gilead are experiencing a decline in their stock prices.

Key Takeaways:

  • Eli Lilly and (LLY) is down $6.44 (-7.5%) to $79.70 on heavy volume, with 19.4 million shares exchanged hands compared to its average daily volume of 5.1 million shares.
  • Valeant Pharmaceuticals International (VRX) is down $2.87 (-1.6%) to $173.07 on average volume, with 1.9 million shares exchanged hands compared to its average daily volume of 3.1 million shares.
  • Gilead Sciences, Inc. (GILD) is down $0.81 (-0.8%) to $99.84 on average volume, with 4.6 million shares exchanged hands compared to its average daily volume of 11.7 million shares.
  • The Streets' ratings report for Eli Lilly and, Valeant Pharmaceuticals International, and Gilead indicate a buy rating for the companies, with strengths such as revenue growth, solid financial position, and expanding profit margins.
  • TheStreet's ratings report also highlights weaknesses in the companies, including unimpressive growth in net income and higher debt management risk.

Statistics:

  • Dow Jones Industrial Average down 0.7% as of Monday, Oct. 12, 2015, 12:55 PM ET.
  • NYSE advances/declines ratio sits at 1,447 issues advancing vs. 1,507 declining with 153 unchanged.
  • Eli Lilly and has a market cap of $92.9 billion.
  • Valeant Pharmaceuticals International has a market cap of $58.7 billion.
  • Gilead Sciences, Inc. has a market cap of $147.9 billion.
  • 11 analysts rate Gilead a buy, 1 analyst rates it a sell, and 3 rate it a hold.
  • TheStreet Ratings rates Gilead as a buy (http://www.thestreet.com/r/ratings/reports/ir-screener.html?action=buy?cm_ven_int=tstwire).
  • Regeneron Pharmaceuticals, Vertex Pharmaceuticals, Novo Nordisk A/S, and Sanofi are among the top gainers in the industry.

Sources:

  • TheStreet Wire, "All three major indices are trading up today with the Dow Jones Industrial Average (http://www.thestreet.com/quote/%5eDJI.html) (^DJI (http://www.thestreet.com/quote/%5eDJI.html)) trading up 35 points (0.2%) at 17,119 as of Monday, Oct. 12, 2015, 12:55 PM ET."
  • TheStreet Wire, "The NYSE advances/declines ratio sits at 1,447 issues advancing vs. 1,507 declining with 153 unchanged."
  • TheStreet Wire, "Regeneron Pharmaceuticals, Vertex Pharmaceuticals, Novo Nordisk A/S, and Sanofi are among the top gainers in the industry."