Cowen & Company Discusses Biotech

Cowen & Company analyst Eric Schmidt told CNBC on Wednesday that there had been "some froth" and possible over-extension in the biotech industry.

The comments came after a recent sell-off in biotech stocks.

Schmidt noted, however, that there was a "rising tide" in the industry with companies that have earnings, "rational fundamental metrics," and reasonable P/E multiples.

The analyst indicated that great scientific progress was being made in the industry.

The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB) closed at $340.08 Wednesday, down 0.98 percent.