You might want to consider implications of the pharma litigation currently underway in S Africa (for those not following the story, the rainbow government is contesting US pharma companies' legal defence of patents... has to do with attempts to offer drugs at realistic prices to African countries and, in particular, HIV-stricken SA). I agree with Darth, biotechs are probably worth a look at the NAS heads south for the summer (the NASDAQ listing of SkyePharma - not strictly a biotech play - listed as 'SKYE' in the US as a case in point. Broadly speaking tends to drift down during any advance and appreciate as investors seek the safety of more defensive plays.
Ref Pharmas-I work in the industry and at the moment the big two in the UK (AZ and GSK) are a bit out of favour in fundamentals -although GSK posted good results this morning there is a view that the big co's are suffering with regard to their near term pipelines-GSK having lost prods like Lotronex and AZ dealing with the patent expiries of Losec.In the short term however you can play the swings GSK seems to be trending in a range between low 17's and mid 18's.In fact one analyst remarked today" that if the first numbers is 17 buy if it is 19 sell ". As for it being a defensive play v Nasdaq-I guess my own view is that unless you are talking big bucks then it shifts too quickly and costs are likely to eat up much of your profits.Smaller Co's might be worth a look -Shire(when it settles down),Celltech,Pharmagene etc.