SciClone (Nasdaq: SCLN ) , a U.S.-based pharmaceutical company that sells licensed drugs on the Chinese market, was down 21% for November after poor quarterly results. In this video, Motley Fool health care analyst David Williamson discusses how a price reduction imposed by the Chinese government on its lead drug, Zadaxin, affected sales. Though the company was able to mitigate the damage, the company's integration of its acquisition of NovaMed isn't going as hoped, which is another factor hurting the company at the moment. Given its strong cash flow, is the sell-off a buying opportunity, or is there additional uncertainty on the horizon?
While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.