Biotech Buoyed by Deal Talk

Biotech continues to have a very strong month in February, and is up some 7% in the past two weeks. The President's recent pledge to reform the FDA to streamline the drug approval process is one factor. Last year, the agency only approved 26 new drugs, a multi-year low. Faster turnaround speed and lower development costs would obviously be welcomed by the industry.

A bigger driver of the recent rise is increased M&A activity in the sector. "Animal spirits" have started to sweep over the sector in 2017, after a down year for deals in 2016. So far this year, we have seen three acquisitions over $5 billion, all with significant buyout premiums. These deals were topped by Johnson & Johnson's (JNJ) purchase of Europe's Actelion, which was the largest pure-play biotech company on the continent....414 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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