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Interested in the growth prospects of the biotech industry? For a closer look at stocks of the biotech sector with positive market sentiment, we ran a screen.

We began by screening the biotech industry for stocks currently rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

Interactive Chart: Press Play to compare changes in market cap over the last two years for six of the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will continue to rally? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Ariad Pharmaceuticals Inc. (ARIA): Focuses on the discovery, development, and commercialization of small-molecule drugs for the treatment of cancer. Market cap at $2.81B, most recent closing price at $16.97. The stock is currently trading 6.67% above its 20-day moving average, 8.70% above its 50-day MA, and 34.91% above its 200-day MA. Net institutional purchases in the current quarter at 27.7M shares, which represents about 18.06% of the company's float of 153.40M shares.

2. Human Genome Sciences Inc. (HGSI): Operates as a biopharmaceutical company. Market cap at $2.93B, most recent closing price at $14.70. The stock is currently trading 7.99% above its 20-day moving average, 44.47% above its 50-day MA, and 37.27% above its 200-day MA. Net institutional purchases in the current quarter at 22.3M shares, which represents about 11.24% of the company's float of 198.44M shares.

3. Optimer Pharmaceuticals, Inc. (OPTR): Focuses on discovering, developing, and commercializing hospital specialty products worldwide. Market cap at $707.63M, most recent closing price at $15.04. The stock is currently trading 6.15% above its 20-day moving average, 10.81% above its 50-day MA, and 20.98% above its 200-day MA. Net institutional purchases in the current quarter at 5.1M shares, which represents about 11.24% of the company's float of 45.36M shares.

4. Exact Sciences Corporation (EXAS): Focuses on developing a molecular diagnostic screening technology for the early detection and prevention of colorectal pre-cancer and cancer. Market cap at $612.54M, most recent closing price at $10.72. The stock is currently trading 2.62% above its 20-day moving average, 5.12% above its 50-day MA, and 24.01% above its 200-day MA. Net institutional purchases in the current quarter at 5.7M shares, which represents about 10.96% of the company's float of 52.01M shares.

5. China Biologic Products, Inc. (CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Market cap at $245.25M, most recent closing price at $9.58. The stock is currently trading 2.95% above its 20-day moving average, 3.53% above its 50-day MA, and 6.31% above its 200-day MA. Net institutional purchases in the current quarter at 718.3K shares, which represents about 10.37% of the company's float of 6.93M shares.

6. VIVUS Inc. (VVUS): Engages in the development and commercialization of therapeutic products for underserved markets in the United States. Market cap at $2.46B, most recent closing price at $24.70. The stock is currently trading 1.92% above its 20-day moving average, 7.32% above its 50-day MA, and 82.18% above its 200-day MA. Net institutional purchases in the current quarter at 6.3M shares, which represents about 10.05% of the company's float of 62.68M shares.

7. PDL BioPharma, Inc. (PDLI): Engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. Market cap at $909.29M, most recent closing price at $6.50. The stock is currently trading 3.40% above its 20-day moving average, 3.36% above its 50-day MA, and 9.91% above its 200-day MA. Net institutional purchases in the current quarter at 12.4M shares, which represents about 9.65% of the company's float of 128.50M shares.

8. Santarus, Inc. (SNTS): Engages in acquiring, developing, and commercializing proprietary products that address the needs of patients treated by physician specialists. Market cap at $410.72M, most recent closing price at $6.56. The stock is currently trading 5.28% above its 20-day moving average, 12.32% above its 50-day MA, and 60.62% above its 200-day MA. Net institutional purchases in the current quarter at 2.8M shares, which represents about 6.65% of the company's float of 42.11M shares.

9. Amylin Pharmaceuticals, Inc. (AMLN): Engages in the discovery, development, and commercialization of drug candidates for the treatment of diabetes, obesity, and other diseases. Market cap at $4.21B, most recent closing price at $25.86. The stock is currently trading 2.01% above its 20-day moving average, 18.62% above its 50-day MA, and 80.31% above its 200-day MA. Net institutional purchases in the current quarter at 8.0M shares, which represents about 5.87% of the company's float of 136.21M shares.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 9 Rallying Biotech Stocks Being Snapped Up By Hedge Funds