Tuesday, April 22, 2014

Biotech Stocks make strong gains for second straight day - why?

The Nasdaq Biotech Index is up 3.4% after a strong gain on Monday after reports over the weekend that Pfizer had approached UK based AstraZeneca with a $101 billion takeover bid.  The 25% premium combined with the potential for the largest acquisition in the industry's history has many biotech investors excited about the prospects of further consolidation at premium prices.

I'd also keep an eye on oncology focused biotech as the biggest showcase event of the year, ASCO, is coming up at the end of May.  I'd expect press releases in the coming weeks on abstract presentations and a general run-up in these stocks going into the conference.

I'll be reporting more on ASCO as it nears. 

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