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Sector Trade: Biotech

Investors are placing their bets on the next M&A deal in biotech. Where should you be looking?

As you may already know, Abbott Laboratories inked a deal to pay $6.6 billion for the drugs unit of Solvay . The purchase gives Abbott full control of its Belgian development partner's cholesterol treatments and exposure to emerging markets.

Also Johnson & Johnson inked a $400 million stock deal with the Dutch biotech firm Crucell as part of a flu vaccine development agreement.

With major deals going down, investors are placing their bets on the next M&A deal in biotech. Where should you be looking?

For insights we turned to Bernstein senior biotech analyst Geoff Porges. There are a lot of companies that look interesting, he says. Companies such as these could easily get taken out.

Porges' Potential Takeover Targets

-Alexion
-Dendreon
-United Therapeutics
-Seattle Genetic

Biotech stocks have underperformed the market and the group should be well positioned going forward, he says.



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Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls

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