Editors' Pick: Originally published March 23.
"I've been waiting for biotech to bottom," said TheStreet's Jim Cramer on Wednesday -- and that might have happened.
The Nasdaq Biotech ETF (IBB - Get Report) is down nearly 25% on the year, but -- with the exception of Wednesday's 2.75% decline -- the ETF has seen steady gains, climbing 5.2% over the previous four trading sessions.
It also helps that Valeant Pharmaceuticals (VRX) is up 24.5% over the past three trading sessions, relieving some investors' fear that the stock is going to zero.
With a possible bottom in sight, the industry might have a window of opportunity, said Cramer, who is also co-manager of the Action Alerts PLUS portfolio.The opportunity for a rally comes from an unlikely source: politics.
The main culprits for biotech's decline have been politicians, Cramer said. They have been bashing the industry over its drug pricing. Of course, it's hard not to when some of the smaller firms -- and people like Martin Shkreli -- have made the group into "public enemy No. 1," Cramer said.
Republican presidential hopeful Donald Trump appears to be moving on from drug companies to focus on companies that export jobs, Cramer said. At the same time, Democratic presidential hopeful Hillary Clinton has been able to put distance between her and Bernie Sanders, which is also helping.
Cramer said, "If biotech has really bottomed, it's time for the Biotech Bible," which provides an in-depth look at a number of different biotech companies.