Ebb & Flow

Whether it's a dead-cat bounce or the start of a rally, biotech has posted the best performance of the major indexes tracked by BioCentury over the past two weeks. Since Sept. 21 - the Friday following the reopening of the markets after the terrorist attacks - the BioCentury 100 has advanced 16 percent. While other indexes have posted double digit gains, too, it's refreshing to see biotech live up to the belief that it's quick off the bottom (see "Nice Bounce").

Brian Younger, portfolio manager of Fidelity Select Biotech Fund, sees the ImClone (IMCL) deal with Bristol-Myers Squibb (BMY) and recent positive FDA events as providing momentum to the sector. "The recent approvals and enthusiastic recommendations - Aranesp from Amgen, Idec with Zevalin, Gilead with Viread, and Biogen's psoriasis application getting accepted - are erasing concerns that the FDA wasn't going to approve anything," he said. ...