View from the Observation Deck

1. The chart above reflects dominant price performance for biotech stocks relative to the broader health care sector.
2. Over the past decade, which has been quite challenging for the health care sector, the NYSE Arca Biotechnology Index posted a price-only cumulative return of 88.0%, compared to 4.2% for the S&P 500 Health Care Index.
3. In 2010-2011, an estimated 40¢ of every Blue Shield of California health plan dollar spent went to hospitals, followed by 28¢ to physicians. Only 12¢ went to pay for pharmaceuticals. (Source: The Washington Post)
4. The key to curbing costs in the U.S. health care system is finding ways to keep people from needing surgery and avoiding lengthy hospital stays. An aging population will only raise the costs.  
5. There are over 900 biotech medicines currently in development targeting more than 100 diseases, according to the Pharmaceutical Research and Manufacturers of America.
6. Venture Capital funds invested $4.73 billion in biotechs in 2011, a four-year high. VCs are mostly targeting later-stage companies. (Source: National Venture Capital Association & PricewaterhouseCoopers)