Buy these funds and ETFs to profit from the biotech merger boom

Posted August 22, 2008

"There have been a mass of deals in the U.S., while on this side of the Atlantic, a number of attractive little biotech stocks have been approached or agreed to bids in the last couple of months." — John Stepek

Blogger’s note: You probably heard about the $43 billion Roche (RHHBY:OTC) bid for Genentech (DNA:NYSE) last month. But you probably haven’t heard about a slew of other buyout offers and mergers going on the biotech industry. Big Pharma is shelling out a lot of money lately to take over smaller biotech and pharmaceutical companies, and John Stepek of the UK’s MoneyWeek knows how you can profit from the M&A boom. Individual stocks are a gamble in today’s market. But John recommends the best funds and ETFs to buy if you want to make money while the biotech sector consolidates. Read on below to learn more.

by John Stepek

Baltimore — (TFN): There’s a merger boom going on right now, but amid all the gloom, no one’s really paying much attention.

It could be because the sector in question has had a miserable few years itself, while almost every other industry was partying. But now, at last, after a long stay in the doldrums, the biotech sector is finally coming back into the spotlight.

**** Scientists have developed a simple, painless test to diagnose a debilitating disease afflicting an estimated 5.1 million Americans. The number of new cases is expected to increase to 454,000 a year by 2010—and 959,000 new cases a year by 2050. An independent peer-review study found the level of accuracy to be over 90%! Most impressive, given the incredible size of the market for the test alone: This below-the-radar stock trades below $5 a share – way below! Find out how you can position yourself for MAJOR gains… ****

There have been a mass of deals in the U.S., while on this side of the Atlantic (the UK and Europe), a number of attractive little biotech stocks have been approached or agreed to bids in the last couple of months.

And the good news is, it’s still not too late to join in the party… Read on to learn how.

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