Healthcare, biotech funds spiked in July with
more M&A and drug approvals in the works
By Pete Gallo
After several years on life support, healthcare and biotech
funds staged a massive recovery in July, with some portfolios
posting their best monthly returns ever. The talk of more
merger and acquisition deals and a modest increase in drug
approvals dramatically revived a sector written off by all but
the most rugged investors.
"The biggest catalyst in July was talk about M&A deals -
Imclone [by Bristol-Myers Squibb] and Genentech [by Roche
Holdings]," says Sam Isaly, who oversees the $1 billion
Caduceus Capital International portfolio, which was up 14.4%
for the month. Deal talk, Isaly says, "was the spark."
In addition to Caduceus, big winners include Pequot
Healthcare Offshore Fund, up 13.7%, Galleon Healthcare
Offshore, up 10%, and MPM Bioequities Fund, whose gain of the
same amount marked the best...