The frothiness of the biotech market at the close of the second quarter prompted Ebb & Flow to chart the larger-cap companies. Even with the recent sell-off in the sector, biotechnology still commands some healthy valuations.

The sector had produced 15 companies with market caps in excess of $1 billion as of June 30. And as the chart shows, 29 companies commanded greater than a half-billion dollar valuations at the end of the quarter. The July sell-off has bumped 10 companies out of that market cap category. But despite the correction, the market still recognizes that the industry is creating value. As of June 30, 1995, only 12 companies had $500 million-plus market caps.