The FDA just announced new regulations for pharma and biotech companies that wish to promote their drugs via Twitter (Nasdaq: TWTR). Companies cannot brag about a drugs benefits without also tweeting about the associated risks of taking it. There aren't a lot of companies currently promoting in 140 characters, but given clear guidlines we could see an increase in sponsored tweets.
In this episode of Market Check-Up, the Motley Fool's health care focused investing show, analysts David Williamson and Michael Douglass, discuss the new FDA regs, why stocks like Ariad (Nasdaq: ARIA) and VIVUS (Nasdaq: VVUS) will have trouble in this new medium, and the most likely to use this new marketing avenue. Watch and find out.
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David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends Twitter. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.