June 29, 2012
In today’s video, I look at new developments in biotech pharmaceuticals. Shares of Arena Pharmaceuticals (Nasdaq: ARNA ) soared this week after the company received FDA approval for its weight loss drug, which will be marketed under the name Belviq. In the video, I’ll explain why I think investors should let the approval buzz die down before jumping into this name. I also lay out the case for rival drug maker Vivus (Nasdaq: VVUS ) , which I’ve given an outperform rating on my profile in Motley Fool CAPS.
Similar to Arena, Vivus also developed an anti-obesity drug known as Qnexa. While shares of Vivus traded higher on Arena’s good news, I think the stock will continue to go up if, and when, the FDA clears its Qnexa drug by July 17. The likelihood of Qnexa getting the green light looks good, considering an FDA approval back in February.
It isn’t always easy to know which stocks will outperform and which will fizzle. Luckily, some of The Motley Fool’s brightest analysts have done the hard work for you. Click here for instant access to this free report, titled: The Stocks Only The Smartest Investors Are Buying. The report reveals why even Buffet is interested in these stocks, and how you can make money from them.