Biotech stocks can skyrocket into the stratosphere on good news. Unfortunately, they can also crash (and sometimes burn) when bad news comes their way.
In this video, The Motley Fool's Erin Miller talks with Fool contributor Keith Speights about three of the biggest biotech crashes during the month of April. Dyax won the dubious honor as the biggest crash of the month after abysmal results for angioedema drug Kalbitor.
Rigel Pharmaceuticals also had a horrible April, with disappointing news from partner AstraZeneca's clinical study of rheumatoid arthritis drug Fostamatanib. And previously high-flying Sarepta Therapeutics felt the effects of gravity, as concerns arose about accelerated approval for Duchenne muscular dystrophy drug eteplirsen.
Watch as Erin and Keith discuss these big biotech crashes -- and which of the three looks most likely to emerge from the rubble.
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. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names 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.
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