XBI - Biotech outperforms as deal making heats up

Biotech stocks have made record gains on Friday amid signs of heightened deal making activity in the beaten down industry. SPDR S&P Biotech ETF (XBI) and iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) have recorded biggest intraday gains since late 2020 as the subsector outperformed the broader market.    Earlier in the day, the ADRs of Mereo BioPharma (MREO) surged amid reports that Anglo-Dutch pharma giant AstraZeneca (AZN) was eyeing a bid for the U.K. biotech with rivals such as Novartis (NVS) in the fray. A little later, The Wall Street Journal reported that U.S. drugmaker Merck (MRK) was trying to acquire the cancer-focused biotech Seagen (SGEN). The hunt for biotech deals comes amid an industry -wide selloff while beneficiaries of the pandemic, such as Pfizer (PFE), Merck (MRK), and Regeneron (REGN), have loaded up record levels of cash. VanEck Vectors Pharmaceutical ETF (PPH) representing 25 of the largest global pharma stocks,

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Biotech outperforms as deal making heats up