I believe that large cap biotech stocks are in a uniquely bullish situation. The stocks are cheap and there are a number of catalysts on the horizon to take the group higher. There are only four large cap biotech stocks remaining and it seems Genzyme will be taken over. There are multiple suitors and Genzyme's board has a number of seats with activist investors in it.
The price being talked about for Genzyme's takeover would represent 20% of the market cap of the remaining three large cap biotech companies. If a portion of that money finds its way into the other large cap biotech stocks the sector would receive a huge boost. Additionally, Gilead and Biogen are repurchasing a large percentage of their shares outstanding. Amgen has been a steady buyer of its own stock over the past few years as well. While mo-mo investors might be selling these stocks, much stronger hands are buying. The type that never sell.