Momentum

Solid first quarter earnings and the recent spate of product approvals have brought a rush of new investment into biotech. The convergence of those fundamentals has injected momentum (remember that word?) into the sector. Throw in the American Society of Clinical Oncology (ASCO) meeting, which is just around the corner, and you've got a yeasty environment for speculation.

Buysiders and market watchers polled by BioCentury provide divergent views on how long the current run will continue. Some suggest that the selloff over the past three years was so severe that the industry was poised for a bounce. Others argue that the rally is justified for the larger cap names that have delivered on products and profits, but warn that many smaller cap names have gotten ahead of themselves. ...