Despite the recent meltdown in biotechnology stocks, there are still areas of opportunity within the sector, Citigroup Research Managing Director Yaron Werber said Monday.
"If you look at year to date, 2014 is shaping up to be the second-best year for IPOs in the biotech space after 2000," he said on CNBC's "Fast Money," adding that many small- and mid-cap stocks gave up their gains in the last three weeks.
But now, large-cap biotech stocks are "very reasonably priced," he added, saying that "some are even in value territory."
"We're looking at straightforward P/Es and PEGs and looking at them versus the S&P 500," he said. "If you look at the large-cap biotech group, it's very defensible. They are almost monopolies. They have great pipelines, and you have a lot of visibility under earnings for the next three to five years. And we're very comfortable saying that a lot of them are going to be growing—almost all of them—north of 20 percent, and so there's value there."
Small- and mid-cap are tougher, he said.
Werber noted that biotech stocks had been largely trading in unison.