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Power Play: Sector poised for jump in M&A activity

Biotech healthcare lab
Alexander Raths | Getty Images

Biotech has been one of the brightest sectors this year, surging about 17 percent year-to-date and the good times are not over.

Gregory Sarian, managing director and partner at Hightower Advisors, tells CNBC's "Power Lunch" on Thursday he sees a jump in mergers and acquisitions in the life sciences space.

"We have seen just as many deals over the past 12 months as we did the previous 12 months, but total deal value is twice that of the previous 12 months," Sarian said.

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He believes once these biotech companies have their orphan drugs ready for next stage testing, bigger pharmaceutical companies will swoop in and buy them.

" One-third of those deals in the last 12 months have been in the medical specialties sector, but a majority of deal value is being generated in the major pharmaceuticals. In biotech, the number of deals is up 50 percent while deal value is up 150 percent."

Health care is down one percent and biotech is down more than two percent during trading.