Investors and bankers are cautiously optimistic that the correction that began in late 1Q14 will provide a floor for a biotech recovery that should continue through the third quarter, with investors being more selective on IPOs and small cap stocks.

With the most anticipated binary event of the year already in the rearview mirror - positive data from a pair of Phase III trials for Vertex Pharmaceuticals Inc.'s combination therapy of Kalydeco ivacaftor plus lumacaftor (VX-809) in cystic fibrosis (CF), buysiders see few major pitfalls or catalysts over the next three months. This will give investors an opportunity to take a breath and position their portfolios for milestones coming later in the year (see "Summer Lull," page 9).