Playing Biotech Bingo as Dendreon, Cell Genesys Shares Soar

As biotech shares flounder overall this year a select few have skyrocketed in the past week. Dendreon (DNDN) doubled on Friday and Cell Genesys (CEGE) surged yesterday. But, before you go on a biotech buying bonanza, a word of caution: biotech can be hazardous to your financial health.

Here's some background: Shares of DNDN jumped after The FDA approved its prostate cancer treatment and CEGE surged 30% after a study showed higher survival rates for its own cancer drug.

Pete Najarian advises investors to look for the "wild, wild west", that’s what he calls biotech companies that are working against the clock with a specific amount of money to produce. And if they don’t produce they’re out of business.

Tim Strazzini says DNDN is a crazy trading name because it’s a single product company. And he adds there’s concern about the study.

What’s the trade asks Dylan?

Pete Najarian says look at option contracts and he recommends the August upside call on DNDN. He explains during a big biotech conference scheduled for Summer, he expects DNDN will become attractive to a lot of other firms

Tim adds Regeneron (REGN) is a company that will have a wide profile.

Guy Adami likes Gilead (GILD) which is up 13% - and it’s not a one hit wonder. He says the next catalyst will be on April 12th when they present at a big biotech conference.

Questions? Comments?

Trader disclosure:
On APR 4, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders  Bolling Owns (DIS), (ICE), (NMX), Gold, Silver Najarian Owns (DNDN), (OI), (RIO), (PDE) Strazzini Owns (BOT), (DNDN), (SNDK), (WMT), (STM), (BRCM)