The AMEX Biotechnology Index posted another strong week and continues to hit new record highs.

This breakout is an excellent sign for the Biotech sector as positive earning reports from sector giants such as Cephalon (NASDAQ CEPH) continue to propel the sector index to higher levels.

The AMEX Biotechnology Index has broken out to new all time highs.

Nanogen Inc (NASDAQ NGEN)., which develops medical test products, said it asked the Food and Drug Administration to approve its cystic fibrosis test kit and the Nanochip 400 microarray system.

The kit is intended to be used for carrier testing in adults, newborn screening and confirmatory tests in newborns and children. The nanochip system is an automated platform used for genetic sequencing.

Biotechnology company Genentech Inc. on Wednesday reported a first-quarter profit surge of 68 percent over the same period last year behind continued strong sales of its stable of blockbuster cancer drugs.

For the quarter ended March 31, the company earned $706 million, or 66 cents per share, compared with $421 million, or 39 cents a share, a year ago.

Excluding special expenses, Genentech said it would have earned $792 million, or 74 cents a share. On that basis, the results exceeded the per-share estimate among Wall Street analysts by 7 cents, according to research firm Thomson Financial.

Revenue was $2.84 billion in the quarter, an increase of 43 percent from the $1.99 billion a year earlier.

Genentech reiterated that it expects profits to be 25 percent to 30 percent greater this year than last. The South San Francisco-based company's stock price has been rising steadily over the last three years as it posts double-digit growth every quarter.

Shares of biopharmaceutical company Theravance Inc. (NASDAQ THRX) jumped in Tuesday premarket electronic trading after Theravance said two drugs it is developing with GlaxoSmithKline PLC were effective in midstage trials.

On Monday, Theravance said the two drugs, known as 444 and 797, were effective as once-a-day treatments for asthma and chronic obstructive pulmonary disease. The South San Francisco-based company said 444 was more effective in widening air passages in the lungs. The drug will be the company's main focus in future trials, while 797 will be developed as a backup