Franklin's new biotech play

Franklin Templeton Distributors is raising $150 million for the Franklin Biotechnology Discovery Fund, a mutual fund that plans to invest at least 65 percent of its assets in equity of biotechnology companies in the U.S. and abroad.

Manager Kurt von Emster told Ebb & Flow that the fund has made three investments with the $3.5 million that's been raised so far. Those include the newly public Megabios (MBIO, see below), as well as Gilead (GILD) and Inhale Therapeutic Systems (INHL)...