Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer Avanir Pharmaceuticals (NASDAQ: AVNR) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Avanir, and see what CAPS investors are saying about the stock right now.

Avanir facts

  

Headquarters (founded)

Aliso Viejo, Calif. (1988)

Market Cap

$428.3 million

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$41.3 million

Management

CEO Keith Katkin (since 2007)

CFO Christine Ocampo (since 2008)

Return on Capital (average, past 3 years)

(66.7%)

Cash/Debt

$69.8 million / $28.9 million

Competitors

Bristol-Myers Squibb (BMY -0.30%)

Eli Lilly (LLY 1.96%)

GlaxoSmithKline (GSK 1.60%)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 26% of the 250 members who have rated Avanir believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, succinctly summed up the Avanir bear case for our community:

Nuedexta revenues have been increasing steadily, but not enough to justify a rebound from [$2.16 to $3.16] and a market cap of [$432M] despite an ongoing double digit quarterly burn and only [$70M] in the bank as of the end of Q3. I suspect traders are looking for positive news on Nuedexta from the [Committee for Medicinal Products for Human Use], but European approval is a notorious false start for companies with products that are already approved in the US. Other pipeline compounds remain in early clinical development.

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