The "Fast Money" traders weigh biotechnology stocks as the sector gears up for blockbuster drugs and possible mergers.

Trader Guy Adami said he likes Tesaro because speculation for a takeover of the company has lasted for several years. He predicted a takeover price between $210-225. Tesaro shares closed at $146.50 on Thursday.

Trader Pete Najarian said he likes Incyte because the pharmaceutical company has a "late stage pipeline that is absolutely incredible with blockbusters here and there."

Trader Tim Seymour said he would bet against the iShares Nasdaq Biotechnology ETF (IBB). He said the resilience of the ETF is surprising and called it a "proxy playoff." The IBB is up over 9 percent year to date.