Biotech enjoyed a big bounce as investors charged into the market late last week in the belief that the Federal Reserve Board's continued tightening is finally keeping inflation fears in check. Indeed, the BioCentury 100 led the key indicators on the week with a 21 percent gain, inching out the NASDAQ Composite's 19 percent move. Blue chips also moved upward, with the S&P 500 adding 7 percent and the Dow Jones Industrials up 5 percent.

More importantly, last week's BioCentury 100 gain reversed a three-week slide that was capped by a 12 percent decline the previous week, which had led to fears of a long, arid summer. The BioCentury 100 now is up 24 percent year-to-date, but still is down 6 percent on the quarter.

Euro IPOs get away

Two European companies made it out the IPO gate. In Germany, drug discovery company GPC Biotech (NMarkt:GPC) raised E103 million ($96 million) through the sale of 4.3 million shares at E24, in the upper end of its target range, underwritten by CS First Boston; Robertson, Stephens; SG Cowen; and Sal. Oppenheim. The stock opened at E31.5 on Wednesday and closed the week at E31.4, with a market value of E531 million ($495 million).