Biotech stocks are off to the best start of the year since 2012 on heels of J.P. Morgan conference

• Takeover speculation is a major catalyst for the rally.
• Bristol-Myers Squibb's $74 billion deal to buy oncology drugmaker Celgene helps fuel takeover speculation.
• Eli Lilly's $8 billion deal for cancer gene therapy biotech Loxo Oncology is announced at the start of the J.P. Morgan health conference on Monday.

After brutal losses to end 2018, the biotech sector is off to the best start of the year since 2012.