Shares of Hemispherx (NYSEMKT: HEB ) climbed almost 200% in 2012 over investor excitement that the company would be resubmitting its chronic fatigue syndrome drug Ampligen for approval from the Food and Drug Administration. The FDA rejected the drug in 2009, citing insufficient efficacy and safety data, but rather than conducting further trials, Hemispherx attempted to simply rework the data it already had. Apparently, the agency disagreed with that approach as negative briefing documents ahead of Thursday's advisory committee meeting sent shares down 45%. In this video, Motley Fool health care analyst David Williamson takes us through just how bad the damage is.
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.