There are rough waters ahead for pharmaceutical stocks as the industry has fallen under heavy fire for its drug-pricing tactics. Not only that, but the Trump administration and its trade policies have the potential to shake things up for drug makers whose profits come from other countries. Add those new threats to an already competitive environment where patent battles dictate whether a company will be profitable, and you have a very unstable industry.
With several unknowns causing traders to shy away from the sector, there are many deals to be had. However, some firms are up against too many obstacles to be considered good investments.
Acorda Therapeutics Inc (NASDAQ:ACOR), Express Scripts Holding Company (NASDAQ:ESRX) and Illumina, Inc. (NASDAQ:ILMN) are three such stocks that are all likely to feel the pressure in the coming months.
Risk and uncertainty can sometimes unlock major deals for investors who are willing to take the plunge, but in this case, the chance of getting a substantial reward any time soon is very slim.