Biotechnology exchange traded funds seem to be coming into favor.  Two ETFs are iShares Nasdaq Biotech (IBB), which is up 8% for the month and Biotech HOLDRs (BBH), up 6% for the month.  Amgen (AMGN) is a top holding in both ETFs, 15% for IBB and 25% for BBH.  Genentech (DNA) is the top holding for BBH with a 39% weight.  These two companies are in the top 10 medicine makers in the world by revenue.

Industry experts say biotechnology is verging on profitability and outperforming pharmaceutical companies, but the industry faces some challenges.  Last year biotech companies received more drug approvals than traditional drug companies and biotech firms are getting a bigger share of venture capital in life sciences.  But pressure from government and managed care insurers to hold down prices can be a challenge for the companies.  As well as pending changes in U.S. patent laws.