Aegerion Pharmaceuticals, Inc. (AEGR), Rigel Pharmaceuticals, Inc. (RIGL), Teva Pharmaceutical Industries Ltd (ADR) (TEVA): The Rise of Little Pharma

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Little Pharma’s big lesson
What’s the lesson to be learned?

Whether we’re talking about pharmaceuticals or any other industry, it makes sense to include some smaller companies in your investing portfolio. These stocks can have the most room to run, as Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)’s performance shows.

However, keep in mind that there is considerably more volatility with smaller stocks. Remember Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL)’s huge drop. That’s why diversification is a must. Also, don’t discount the importance of the dividends that many Big Pharma companies pay. None of the Little Pharma stocks currently pay out dividends.

All things considered, though, Foolish investors should consider including some small pharmaceutical companies like Isis on your watchlist. Investing in Little Pharma holds the potential for big gains.

The article The Rise of Little Pharma originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned, and neither does The Motley Fool.

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