Is This a Biotech Dip, Correction, or Time to Panic?

Biotechs have dropped dramatically over the last week. The impetus seems to be worry about pricing for Gilead Sciences' (NASDAQ: GILD  ) hepatitis C drug Sovaldi that could create an opportunity for AbbVie (NYSE: ABBV  ) , which is developing a hepatitis C regimen of its own.

While losing pricing power would be bad for the industry, there's likely more going on here. As Fool contributor Brian Orelli and health-care bureau chief Max Macaluso discuss in the video below, biotech valuations have been a bit inflated, so much of the decline could be due to investors itching to take profits.

The decline could be an opportunity to pick up share in a company such as Regeneron Pharmaceuticals (NASDAQ: REGN  ) , which is up more than 550% over the last three years. It can be hard to pull the trigger when a company is flying high, but the downturn provides an opportunity to buy shares at a discount.

Look outside of biotech for growth
The one sure way to get wealthy is to invest in multibillion-dollar industries. Our analysts have found three megatrends -- not named biotech -- that they think are poised for substantial growth. They've revealed three picks poised to dominate those areas in a new free report that you can download instantly by clicking here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2897440, ~/Articles/ArticleHandler.aspx, 11/28/2014 1:03:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement