The Food and Drug Administration has been cracking down on a class of constipation drugs because of fears around potential cardiovascular risks. This additional regulatory oversight has big implications for a drug still in the pipeline from Nektar Therapeutics (NAS: NKTR) , and it brought the company's shares down 14% on Monday. In this video, Motley Fool health care analyst Brenton Flynn talks about the market for these drugs, and how the FDA's concerns are impacting not only Nektar but several other companies operating in this space.
While you can certainly make huge gains in biotech and pharmaceuticals, the story of Nektar Therapeutics shows that this sector can also be associated with huge risk. That's why we think the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name 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.
The article Down 14%, FDA Concerns Crush Nektar originally appeared on Fool.com.
Brenton Flynn has no positions in the stocks mentioned above. Max Macaluso has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.