Biotechnology is rising up to analyst’s predictions that a near future run could send related stocks and exchange traded funds (ETFs) up. The latest April announcement that Takeda Pharmaceutical would buy Massachusetts-based Millennium Pharmaceuticals (MLMN) for $8.8 billion sent the MLMN shares higher than they’ve been in a while, reports Don Dion for Seeking Alpha.

Millennium sells the anti-cancer injection drug Velcade, and is lifting investor’s expectations for a biotech sector run. PowerShares Dynamic Biotech & Genome (PBE) could especially benefit, as 80% of this ETF consists of small-mid-cap stocks that will benefit from the acquisition. PBE holds 8.4% in MLMN. It’s down 5.2% year-to-date.

Other biotech ETFs that could experience a shot in the arm:

• SPDR Biotech (XBI), down 3.9% year-to-date
• iShares NASDAQ Biotechnology (IBB), down 4.7% year-to-date
• First Trust AMEX Biotechnology (FBT), down 4.9% year-to-date
• Biotech HOLDRs (BBH), holds 1% in MLMN, up 1.8% year-to-date

Tags: Biotechnology, Sector ETFs