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.

IBB Chart

As you'd expect, biotech stocks are out-performing the S&P 500.

IBB Chart

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.

XBI Chart

Gilead Sciences ( GILD) leads the biotech big caps by a wide margin:

GILD Chart
Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. 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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