In this video, Motley Fool health-care analyst David Williamson discusses Spectrum Pharmaceuticals , and why more than 50% of the stock's float is sold short. The company took off in 2011, when production problems with the generic drug Leucovorin gave it a chance to get doctors to switch to its more expensive branded drug, Fusilev, but sales of Fusilev have flagged lately. David tells investors whether Fusilev's days of sales growth are over, and what else Spectrum has up its sleeve that may prove the shorts wrong.
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.
The article Are Short Sellers Right About Spectrum? originally appeared on Fool.com.
David Williamson and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.