The unpleasantness in the markets this past month has created some good buying opportunities in biotech. Compare the performance of the Amex Biotech Index with that of the S&P 500 over the past three months. The index is down 10% while the S&P is down only 4.8%. This is irrational in terms of the underlying value of biotech stocks. The surge in Pharmion’s (Nasdaq: PHRM) price last week is a great example of good science making for good investing.
