Biotechs' Rocky Road

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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 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 and GW Pharma , 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.

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The article Biotechs' Rocky Road originally appeared on Fool.com.

Brian Orelli has no position in any stocks mentioned. Max Macaluso, Ph.D. owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences. 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.

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