The biotech sector is moving into the post- Genentech ( DNA) era, so where will all the Genentech money go?

Genentech's minority shareholders are in the process of tendering their shares to Roche at $95, which will ultimately free up $47 billon in investment capital that should be re-deployed elsewhere. The hope, at least amongst biotech investors looking for a spring rally, is that much of that money will stay in the family.

The most immediate beneficiaries are likely to be the other big-cap biotech firms -- Amgen ( AMGN), Biogen Idec ( BIIB), Celgene ( CELG), Genzyme ( GENZ) and Gilead Sciences ( GILD). Credit Suisse's biotech analyst Michael Aberman notes that the cumulative market cap of the remaining large-cap biotech companies totals about $140 billion.

"If only 50% of the DNA/Roche cash stays in U.S. large-cap biotech, it could lead to a fund flow tailwind of more than 15% of the U.S. large-cap group," Aberman says.

If investors are seeking another biotech investment of similar size to Genentech, their choices are Amgen ($50 billion market cap) and Gilead Sciences ($40 billion market cap), says Lazard biotech analyst Joel Sendek.

"Gilead is our top recommendation for new investment into large-cap biotech, given its high EPS earnings per share growth rate and diverse pipeline of compounds, and discount price," says Sendek.

Biotech investors are growth investors, almost by definition, which is why Genentech was so widely held. J.P. Morgan analyst Geoff Meacham believes that investors looking for a new biotech growth investment will probably park new money into Gilead Sciences and Celgene.

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