In Q1/2010, the AMEX Biotech Index (BTK) reached an all-time high at 1254, driven mainly by the performance of Intermune (ITMN, +240%) and OSI Pharmaceuticals (+92%). >>> BTK Components
Meanwhile, the NASDAQ Biotech Index (NBI) hit its highest mark in more than eight years, at 963. >>> NBI Components
Both biotech indices stand comfortably above their levels from October 2007 (BTK: +48.2%, NBI + 6.9%), whereas S&P500 subsectors such as energy, utilities, industrials, telecom and financials are down approximately 25-55% over the same period.
Driving forces behind the outperformance of the biotech sector include the resolution of the U.S. healthcare legislation, positive regulatory news, optimism regarding upcoming milestones and the expectation of further M&A activity.
Sources: Inside BIO Blog, BioCentury
