Trader Guy Adami said he likes Tesaro because speculation for a takeover of the company has lasted for several years. He predicted a takeover price between $210-225.
Trader Pete Najarian said he likes Incyte because the pharmaceutical company has a "late stage pipeline that is absolutely incredible with blockbusters here and there."
Trader Tim Seymour said he would bet against the iShares Nasdaq Biotechnology ETF (IBB). He said the resilience of the ETF is surprising and called it a "proxy playoff." The IBB is up over 9 percent year to date.
Pete Najarian owns calls AXP, BAC, BZH, C, CHK, CLF, DAL, ETP, FB, FSLR, GE, GLD, HAL, HMY, INTC, KMI, MAR, MRO, MPEL, QVCA, SPM, TCK, VALE, XLF, XLNX, ZIOP. Pete is long stock AAP, AAPL, AMD, BAC, CL, DLTR, DIS, EBAY, EMR, GILD, GM, HAIN, HUM, IBM, INTC, JWN, K, KO,KORS, KMX, LUX, MAR, MDLZ, MOS, MSRT, MRK, RL, TPX, TRN, UNP, V, PFE, WFT.
Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM
Dan Nathan is long SPY May put spread, XLV long APR-June put spread, XLI long June put spread, XRT long April-June put spread.
Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.