Going once, going twice...

Anyone looking for evidence of the biotech industry's current good fortunes will find several examples in today's issue. When you reach the stage when it's hard to make out why an AstraZeneca would pay a whopping big premium to acquire a company like MedImmune, you know that the numbers are growing bigger than most analysts can make sense of. Perhaps it's a simple sign that anyone looking to make a big deal, any big deal, has fewer options and higher prices to consider.

The best indicator of the underlying strength of the business, though, lies in the hands of venture capital groups, which continue to pour money into drug development. According to Ernst & Young, more biotech money in San Diego helped propel the region into second place as a magnet for investment cash. Anyone looking to figure out where the big deals of the future will be found should pay close attention. - John Carroll