Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Cadence Pharmaceuticals (Nasdaq: CADX) has received the dreaded one-star ranking.

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

Cadence facts

Headquarters (founded) San Diego (2004)
Market Cap $367.0 million
Industry Pharmaceuticals
Trailing-12-Month Revenue $24.4 million
Management Co-Founder/CEO Theodore Schroeder
CFO William LaRue
Return on Equity (average, past 3 years) (76.4%)
Cash/Debt $108.6 million / $28.8 million
Competitors Teva Pharmaceutical
Cumberland Pharmaceuticals
Pacira Pharmaceuticals

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

On CAPS, 37% of the 98 members who have rated Cadence believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

Cadence has gapped down on earnings the last three quarters and I don't see that as likely to change on August 2. Ofirmev revenues have been increasing moderately behind a furious marketing drive but are still a long way from matching SGA expenses and quarterly burn. With the share price up 50% from recent lows as the summer tide lifts the biopharma sector, look to Cadence to be at the forefront of the wave back downward.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Cadence, with its one-star rating, may not fit the bill for your portfolio.

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