Biotechs bounce after three-day slide

NEW YORK (Reuters) - Biotech stocks were trading higher on Tuesday, putting the Nasdaq biotechnology index <.NBI> on track to snap a three-day losing skid heading into the latter stages of trading.

The sector has been under pressure recently, falling nearly 4 percent from its most recent record high on August 29 before Tuesday's gains.

Salix Pharmaceuticals shares, up 4 percent to $154.73, were among the bright spots in the group after the company said late Monday its treatment for distal ulcerative colitis had received tentative approval from the U.S. Food and Drug Administration.

The gains would mark the biggest one-day jump for the stock in a month, which has a price momentum ranking of 100 according to Thomson Reuters StarMine, giving its the strongest price momentum among all of its peers.

However, its intrinsic value stands at $103.40, roughly 33 percent below its current price, suggesting it is highly overvalued.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)