Performance

Rx for reversal

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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