Fast Money Traders Share Their Biotech Picks

Pete Najarian said on CNBC's Fast Money that he likes Merck & Co., Inc. MRK, Pfizer Inc. PFE and Bristol-Myers Squibb Co BMY in the biotech space. He has a long position in these stocks and he likes them because they paid a good dividend yield and they offer a nice upside potential. Najarian believes that there could be more takeovers in the space.

Steve Grasso thinks that the biotech sector is going to be challenged next year. He added that people are probably going to pay attention at Kite Pharma Inc KITE, the stock that traded 42 percent lower last year. It could be interesting as a takeover target.