Biotech stocks, which have risen 550% since the depths of the recession, are now prime targets of short sellers betting they will collapse in grand fashion. “Of any part of the market, this is the one with the most bubble-like characteristics, without question.”
Bubble Watch: Biotech Edition

The financial markets have been on the rise for the past six years. That can only mean that doom is around the corner. What financial bubble is waiting to pop, and destroy us? Today: biotech stocks.
How Sergey Brin can avoid Parkinson's Disease
Google cofounder Sergey Brin has popped his blogging cherry, using his first post as an excuse to promote his wife Anne Wojcicki's personal genetic testing company 23andMe. Turns out Brin has a genetic mutation likely inherited from his mother that indicates a higher risk for Parkinson's Disease — a debilitating…
23andMe geneticists want to knock off Fashion Week cheekbones
Google-backed startup 23andMe is working on fixing the Bay Area beauty gap by convincing the pretty people at New York's Fashion Week to submit genetic samples for the new, low cost of $399. As non-California residents, Manhattanites represent a genetic talent pool untouched by regulatory agencies in the startup's…
Genentech laughs off $43.7 billion buyout offer
You're forgiven if you don't know there's a company a few miles north of Google that pulls in more than $10 billion a year selling drugs. Genentech makes the cancer treatment Avastin, the arthritis and lymphoma drug Rituxan, and the breast cancer fighter Herceptin, each of which bring in a few billion a year. Its…
Bayer building in Berkeley gets visit from bomb squad
The Berkeley Police department responded to a call of a suspicious suitcase outside a building owned by Bayer AG on 7th street between Dwight and Parker. The pharmaceutical manufacturer has their biotechnology headquarters in the town and contributes grants to student research at the University of California. …
23andMe promises to explain your hatred of cilantro — with science!
Got to hand it to the team at 23andMe — when employees say that their personal gene sequencing services serve no medical purpose whatsoever, they mean it. Case in point is the company's latest blog post promises that with enough customer feedback, they may just be able to answer the age old question "Is my distaste…
Will Art Levinson leave Genentech after a Roche takeover?
South of the City and hard by the shores of San Francisco Bay, Genentech rarely attracts the attention of the founders of flashy Internet startups as they drive past its offices on the way to the airport. But the biotech company's longtime CEO, Art Levinson, is an integral part of the Silicon Valley scene, serving…
Cloned dog in canoe
As F. Scott Fitzgerald once quipped, "The rich are different than you and me." Case in point here is this pet cruising on Echo Lake in the Sierras, apparently one of six privately cloned in South Korea from a deceased dog named Missy. Have a better caption? The best one will become the new headline. Yesterday's…
23andMe told to cease and desist by California Department of Public Health
Not a good week for the Wojcicki family. Googler Susan Wojcicki has been caught making expensive demands on Google's daycare facilities. Meanwhile, her sister Anne, wife of Google cofounder Sergey Brin, is fending off cease-and-desist letters from pesky health regulators. Anne's company, Google-backed 23andMe, was…
23andMe admits personalized genetic test serves no medical purpose
Facing possible fines and jail time, local gene sequencers Navigenics and 23andMe will have to get permits if they want to continue testing resident of New York state. Meanwhile, California is investigating 12 complaints against unnamed gene sequencing companies, with officials noting that "all genetic tests must be…
Actual doctors urge skepticism of DNA-sequencing fad
Personal gene sequencing is all the rage among technophiles. But the medical establishment isn't necessarily on board — for starters, no insurance company will cover the cost, and doctors aren't always prepared to appropriately evaluate the results of a test. In an editorial in the New England Journal of Medicine,…
Stem cell breakthrough could mean biotech bucks for Bay Area
Most passersby don't notice California Institute for Regenerative Medicine's austere signage tucked between Borders and Amici's on King Street, kitty-corner from the ballpark . And the San Francisco-based CIRM has struggled to turn its $3 billion in state funding into an active economic engine for the area. But a…
Google founder's wife uncovers cucumber haters everywhere
Google cofounder Sergey Brin's wife, Anne Wojcicki, cofounded and helps run a company called 23andMe. Since Google conveniently invested in 23andMe earlier this year, repaying a loan Brin made to the company, Google shareholders might want to keep a close eye on it to make sure everything is on the up and up. But…
Google boys seriously in love with biotech
What are Sergey Brin and Larry Page really obsessed about? Look no further than their choice in lifemates, says Attila Csordas. Sergey Brin married 23andMe cofounder Anne Wojcicki — and also lent the company $2.6 million, which Google repaid when it invested $3.9 million in the company. Larry Page's fiancée, Lucy…
How soon can I Google my date's DNA?
J. Craig Venter is the scientist whose startup beat the government-funded Human Genome Project to mapping a single person's entire DNA. Whose DNA? Duh, Venter's! On the last morning of the Web 2.0 Summit, Venter brought the audience up to date on the faster-than-Moore's-Law advances in reading and writing genes.
Haha, I saw your mom's genes
Say what you want about the alleged nepotism behind 23andme, but this genetics startup founded by Anne Wojcicki (recently married to Google co-founder Sergey Brin) sounds sweet. According to Forbes, clients send in a cheek swab, get back info on their DNA, including information on their ancestry and even distant…
Stern man in cheap wig wants your DNA
Lord Justice Sedley, pictured here looking prim, has ruled that every person living in or visiting the United Kingdom ought to submit his or her DNA to a nationwide criminal database, to offset the presumed bias against "ethnic minorities" who make up the bulk of the existing database. Apparently, this guy is a…
Valley trick #1: Always trust the bearded crackpot
We're nothing if not cynics about "new hot fields." Why do we trust former Paypal CEO Peter Thiel when he invests in biotech out of a hope to indefinitely extend the human lifespan? Because his recipient, Methuselah Foundation head Aubrey de Grey, is hairy.
Let's have Wired run the Valley
Oh boy, another list! The ink has hardly dried on Business 2.0 Magazine's People Who Matter list, and Wired Magazine has already trumped it with the annual "Wired 40" list. While Business 2.0 is just playing Truman Capote, Wired's list is a de facto investment guide for the casual midwestern techie. Some highlights: