The true test of whether small-cap biotech stocks can sustain this rally will come after the near-term catalysts like FDA decisions and medical meetings pass and the companies inevitably raise cash by selling stock.

So far, however, investors are loving the risky biotech stuff and eschewing their larger, more successful cousins. As of last week, micro-cap biotech stocks were up almost 60% this year, while large-cap biotech stocks were down 38%.

Adam Feuerstein writes regularly for In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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