Biotechs Are Back In Favor Amid Plethora Of Positive Developments
Written By Gene Marcial, Contributor
It isn’t often that the biotechnology industry gets swamped with plenty of good news, but that’s what has been happening in recent months. Not surprisingly, they have attracted investor interest.
A number of new drug approvals, affirmative data, and accelerated sales and earnings growth at the big biotech companies have re-focused attention to the industry. And increased activity in mergers-and-acquisition front has added to the sector’s allure. A robust M&A environment, a key ingredient for a sustainable biotech bull market rally, has helped drive up the price of many biotech stocks.
“Valuations are stretched once more, and understandably so based on the plethora of good news,†notes John McCamant, editor of the Medical Technology Stock Letter. The biotech sector “has continued to deliver a dazzling array of mostly good news,†he says, so the performance of biotech stocks continues to impress investors.
Since the beginning of the year, there has been a full range of positive news events that has driven the industry’s improving fundamentals – “key themes that lead to sustainable sector rallies,†says McCamant.
One active acquirer is Amgen AMGN -1.16% (AMGN), which recently purchased (ONXX) for $10 billion . . . read more