Last week, the Nasdaq Biotechnology Index (IBB) , which has $7.6 billion in assets, broke through the $300 level for the first time in eight months, and with that mountain crested, could be on a glide path to $330 by the end of the year.
Additionally, on September 12, 2016, all recognized biotech ETFs reported positive performance results, giving the sector another "optics" boost and attracting more investors.
Driving sector performance are a recent series of mergers and acquisitions, including Horizon Pharma's (HZNP) purchase of Raptor Pharmaceutical Corp., and reported smaller acquisition deals by Gilead Sciences (GILD) . Additionally, upward momentum by Republican presidential candidate Donald Trump, viewed by biotech industry insiders as more industry-friendly than Hillary Clinton, is also viewed as a positive by sector analysts.
"We believe the large cap names in the sector are poised for a robust recovery in the second half, even as political fears persist through year end and beyond," notes Leerink Partners in a recent analyst note.
Other industry experts say biotech's were due for a bounce back after some rough sledding in 2015 and early 2016.
"Biotech stocks are beginning to rebound from one of the largest selloffs since the sector was formed in the early 1980s," notes Paul Yook, co-founder of Bioshares, which manages two biotech exchange traded funds.