Why Depomed Isn't Worth the Risk

In the following video, Motley Fool health-care analyst David Williamson discusses Depomed's major FDA advisory committee embarrassment. The company's menopause drug Sefelsa received a nearly unanimous vote against it, not based on risk vs. reward, but on efficacy. Depomed paid $1 million for the opportunity to be reviewed by the panel. In the video, David tells investors how the company could have made such a miscalculation, why it could be a win on the market if the drug were to be approved, but why it's such a long shot that it isn't worth the risk, and what else Depomed has in its arsenal.

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 Why Depomed Isn't Worth the Risk originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.