In this video from Tuesday's Market Checkup, Motley Fool health-care analyst David Williamson takes investors through the biggest investing stories in the health care space today.
In this segment, David takes a look at two of the day's losers from the world of health care. Animal health powerhouse Zoetis (NYSE: ZTS ) fell 5% today, after it reported fourth-quarter results that came in slightly ahead of analyst estimates, at $0.36 per share versus an estimate of $0.34. However, the news that had shares falling was the company's guidance for 2014. With a midpoint of $1.51 in per-share 2014 earnings, guidance was 10 cents lighter per share than analysts had hoped, and the stock took a haircut as a result.
Small-cap active pharmaceutical ingredient maker Cambrex (NYSE: CBM ) is today's other loser. While there was no further clarity regarding rumors over the a possible deal for Cambrex regarding the hepatitis C drug Sovaldi, the more important factor today was that the company released guidance for 2014, which, like Zoetis, was also lower than estimates.
How best for investors to play the volatile biotech space?
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In The Motley Fool's brand-new free report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.