Biotech Stock Boom Times Are Back
Biotech stocks are booming again.
The iShares Nasdaq Biotechnology ETF (IBB) closed at 272.63 Monday, less than one point below the year (and all-time) closing high reached on Feb. 25. The sector's steep sell off in March and April are a distant memory. Roche's (RHHBY) acquisition of InterMune (ITMN) has put some M&A oomph into biotech stocks.
As you'd expect, biotech stocks are out-performing the S&P 500.
The S&P Biotech ETF (XBI) is also showing a strong recovery but not as much as the IBB given the former's broader exposure to small-cap stocks.
Gilead Sciences (GILD - Get Report) leads the biotech big caps by a wide margin: