You simply can't keep biotech down. I think this move started when Gilead (GILD) began to move up after that last quarter and then accelerated when Regeneron (REGN) showed some good results on its cholesterol drug.
But now everything is off to the races, including Biomarin (BMRN), which is a rumored takeout; Celgene (CELG), which defeated a patent challenge; and Biogen (BIIB), which has shaken off recent weakness related to slower sales of its MS drug and investors are now fully focused on the prospects of its Alzheimer's drug success.
One thing that's very important to point out is that AbbVie (ABBV), which was lambasted for what was widely considered to be a dramatic overpay for Pharmacyclics (PCYC), is now back to where it was before the purchase.
If drug companies know they won't be penalized even for a buy of Pharmacyclics' size -- after an 88% jump to begin with -- they will be more willing to take the plunge.
Who will Gilead buy?
The answer is pretty much anyone it wants, which is why the group's not quitting.
The three I would buy? Receptos (RCPT) for its Crohn's disease and anti-ulcerative colitis drugs, Radius (RDUS) for its anti-bone-breaking formulation, or TG Therapeutics (TGTX) for its cancer therapies.
This group's amazingly hot given that right now there is a dearth of news after a lot of conferences. To me, that cuts for more appreciation ahead.