Can’t imagine another biotech run up. Too expensive to do required clinical trials, too many black box warning requirements, very difficult to get medicare reimbursement. The industry overall is shedding jobs at a huge pace (about 120,000 jobs since 2009). Merck bought Schering a couple years ago and has fired almost all the former Schering employees. Everyone is always hoping for something great to come out of the start ups, but recent blockbusters are few and far between . . . . . Plus, lots of expired patents on big compounds (lipitor etc.) without much new that’s exciting. For example, Arena appears to have nothing beyond phase 1 except Lorcaserin (I know, they got good news from the FDA recently) -but they seem to be partnering with Ortho on that one – so Ortho will likely get a big share of potential profits. Plus there are always considerations such as downstream problems with patents or consumer demand. Haven’t looked at the patent coverage but there are always generics out there looking for a way to invalidate patents on blockbusters (Prozac, etc.). Just a very risky business –