An Attractive M&A Play In The Busy Biotech Space

By Gene Marcial

For much of the early part of this year biotechnology stocks have been hot and high-flying but, predictably, the upward speed has decelerated in recent weeks for a variety of reasons. But investors shouldn’t make the mistake of turning away from the admittedly volatile sector.

The fundamental underpinnings of the industry remains positive and in spite of the biotech’s fast and frenzied gains, many if not most of the stocks are far from overvalued.

“The vast majority of biotech companies are very healthy in every aspect – sales/earnings, clinical trials, R&D programs, and cash positions,” says John McCamant, a close watcher of the biotech space and editor of the Medical Technology Stock Letter.