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By Val Brickates Kennedy

Drug stocks outpaced their biotech counterparts in a broad-based move into positive territory Monday, gaining in the wake of comments made by Federal Reserve chief Ben Bernanke that the recession could end later this year.

The Amex Pharmaceutical Index (DRG) advanced 1.2% to 242.69 in early action, while the Amex Biotechnology Index (BTK) edged up 0.3% to 604.83. The Dow Jones Industrial Average rose 0.7% to 7271, extending a modest four-session winning streak from last week.

Big Pharma made gains on both sides of the Atlantic.

Shares of Bristol-Myers Squibb (BMY), Abbott Laboratories (ABT), Pfizer Inc. (PFE) and Eli Lilly & Co. (LLY) led among U.S. drugmakers, all moving up about 2%.

Meanwhile, AstraZeneca (AZN), GlaxoSmithKline (GSK), Novartis (NVS) and Sanofi-Aventis (SNY) were the biggest winners on the European side, with their U.S.-listed shares all up at least 3%.

United Therapeutics (UTHR) was the notable loser among the larger-cap biotechs, with shares tumbling 9% to $60.49.

Earlier Monday, United Therapeutics said the Food and Drug Administration may not approve its Tyvaso by the application's April 30 deadline because of lingering questions about the product's delivery system.

The company said it hopes to resolve any delay within "a few months." A version of the drug is already marketed under the name Remodulin.

Shares of CV Therapeutics (CVTX) also dropped, dragged 5% lower to $19.70 after Japan's Astellas Pharma (ALPMY) said it was dropping its $16-a-share hostile bid for the firm.

Last week, Gilead Sciences (GILD) struck a friendly deal with CV to acquire the company for $1.4 billion, or $20 a share. Shares of CV had trended higher late last week in anticipation of a possible counterbid by Astellas.

-Val Brickates Kennedy; 415-439-6400; AskNewswires@dowjones.com