Why One Analyst Eyes Opportunity in Biotech

The biotech sector has enjoyed a solid week of gains indicative of the iShares Nasdaq Biotechnology Index ETF (IBB) climbing over 3.5% in the past five trading sessions.

"On a short-term basis, it is probably a little ahead of itself but, I like the names," 55 Capital market strategist Max Wolff said on CNBC's "Power Lunch" Friday afternoon. "I think there is an opportunity here."

He noted the potential of a "short-term pause" due to an unusual degree of uncertainty about "who exactly will be paying for what" within the sector.

"But, longer-term we like this trend," Wolff contended. "The demographics of aging, the global market and it looks like this is an area that may be less likely to be affected by or slammed into, various Twitter policies, or public politician-led discussions about drug prices."

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