Investing in Biopharma? Avoid These 2 Stocks

Having a handful of reliable, low volatile stocks to anchor your portfolio is a great way to pad your wealth from short-term shocks while supporting its long-term growth. The pharmaceutical industry, including biopharma, has long been home to some of the most stable, yet growing, companies. In the face of increasing demand for newer and more complex medical treatments, these companies have nearly perfected the art of developing and selling drugs. And it's no surprise that investors have preferred such companies for their portfolios. 

But there are plenty of clunkers, especially in the biopharmaceutical space, that can potentially burn your hard-earned wealth instead of preserving it. Specifically, shares of the two drug manufacturers I'll discuss below have lost 75% of their total value over the last five years, and there isn't much hope for improvement anytime soon.

In short, these companies are unlikely to deliver the slow but stable growth over time that prudent investors look for. Here's why you should avoid them.

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Source Fool.com