Buyout Rumors Flood the Biotech Sector

Updated from 3:54 p.m. EDT

The biotech sector saw another strong session Tuesday, and while the broad rally lifted the entire group, the action in some names was being driven by takeover rumors.

One of those stocks was Celgene (CELG Quote), which closed up $2.37, or 7.6%, at $33.47 after speculation made the rounds that Amgen (AMGN Quote) might have its eye on the company. Another factor helping Celgene's stock was a positive report out of Spain regarding one of the company's cancer drugs.

Traders were certainly interested in Celgene, as 8 million shares changed hands, more than five times the normal volume. Amgen, the rumored suitor, ended higher by $1.77, or 2.9%, to $63.65. ...