Biotechs have taken a bit of a beating of late, with the Nasdaq Biotechnology Index off 18% from its high in February and flat for the year.
There doesn't seem to be any one thing to blame. Instead it's a combination of little things like worry over drug pricing and investors locking in gains after a long run.
Despite the tempered feelings about the sector, there's still growth to be had. Gilead Sciences (NASDAQ:GILD) should come close to generating its entire market cap in cash over the next seven years. But investors should be careful when looking at companies such as Orexigen (NASDAQ:OREX) and GW Pharma (NASDAQ:GWPH), which have shot up on limited news.
Watch the video below where senior biotech specialist Brian Orelli and health-care bureau chief Max Macaluso discuss the prospects for Gilead, Orexigen, GW Pharma, and the rest of the industry.