M&A as a driver

M&A deals also could spark interest in biotech stocks, according to Musson.

"Just recently we've seen Schering AG take out Collateral Therapeutics on a big premium plus Johnson & Johnson acquire Tibotec-Virco at a $300 million plus price," he noted. "This reminds us all how desperately the big pharmas require new products - more than their own R&D can generate - and that they will pay up for them."...