The AMEX Biotech Index ($BTK) made a strong move off of the 200 day moving average. The index is currently at 753 (up from 719 on March 12). If the Biotech Index can now break through the 50 day moving average at 757 it would be a confirmed bullish breakout and signal that the Biotech sector is set to move toward the highs set at the first of the year.

The AMEX Biotech Index ($BTK) has experienced tremendous selling pressure in recent weeks. The index is now testing support at the 200 day moving average. If support can hold it would be a strong technical indicator and suggest that the biotech sector is poised to move higher thus making the current levels a tremendous buying opportunity.

Shares of La Jolla Pharmaceutical Co. shot to a two-year high Monday after a Pacific Growth Equities analyst said data from a clinical trial of Riquent, its lupus treatment, was better than expected.

Analyst Liana Moussatos upgraded La Jolla shares to "Buy" from "Neutral." On Thursday, the San Diego-based company reported that lupus patients treated with 300 milligrams or 900 milligrams of Riquent per week showed significantly more improvement than those treated given just 100 milligrams per week.

"We believe this is significant as 100 mg was the highest dose tested in previous pivotal studies and the level of antibody reduction achieved with 900 mg has been correlated with potential clinical benefit," Moussatos said. We anticipate a potential top-line data release in early 2009, launch in early 2010 and potential peak U.S. sales of about $378 million."

Shares of La Jolla Pharmaceuticals gained $1.79, or 30.3 percent, to close at $7.70 on the Nasdaq Stock Market, having hit a new high of $8.14 earlier in the session. Previously, the stock traded in a 52-week range of $2.77 and $6.85.

Encysive Pharmaceuticals Inc. said Wednesday Australian regulators approved the company's marketing application for its pulmonary arterial hypertension drug Thelin.

Pulmonary arterial hypertension is marked by abnormally high blood pressure and narrowing in the small arteries of the lungs, making blood flow more difficult and thereby causing the right side of the heart to become enlarged. The condition causes shortness of breath, limits activity and can develop into progressive heart failure, which is fatal unless treated successfully with a heart/lung or lung transplant.

The drug is currently under review by the Food and Drug Administration, but the approval process has been delayed. In July, the agency requested more data on the drug in order to consider it for approval.

Thelin was approved by the European Commission and is available in Britain.

Shares of Encysive rose 5 cents to $3.45 in morning trading on the Nasdaq Stock Market.