Biotechnology shares were trading to the upside Monday as the group rallied along with the overall market.

The Nasdaq Biotechnology index added 3.1% to 722.63. Components of the index and sector bellwethers Amgen ( AMGN) and Gilead ( GILD) added 4.9% and 6.3%, respectively.

Another big name in the group, Genentech ( DNA), said that after a planned interim analysis, a late-stage study of Avastin plus chemotherapy in patients with early-stage colon cancer will continue. Shares were off 21 cents, or 0.3%, at $83.32.

Results from a study on Vertex Pharmaceuticals' ( VRTX) experimental cystic fibrosis drug showed that the drug, VX-770, improved lung function and was safe. However, the findings weren't wholly consistent with those from a previous small trial on the drug. Shares were down in early trading, but rose back to a penny gain, at $25.67, by mid-afternoon.

AMAG Pharmaceuticals ( AMAG) was one of the day's notable decliners, shedding $4.67, or 12.7%, to $32.08 after a regulatory update. The company said it received a complete response letter from the Food and Drug Administration for ferumoxytol for iron deficiency anemia in chronic kidney disease patients.

The company said it believes it can address the FDA's concerns without conducting any additional clinical trials prior to approval. The company said it is still preparing to launch the drug in the first quarter of 2009.

Elsewhere, Barclays Capital upgraded Pfizer ( PFE) to overweight from equal-weight on Monday. Shares were up 33 cents, or 2%, at $17.24.

Pfizer is set to report its third-quarter results on Tuesday before the market open. Analysts, on average, are looking for a profit of 60 cents a share on revenue of $12 billion.

Also watch for earnings on Tuesday from Biogen Idec ( BIIB), Schering Plough ( SGP) and Boston Scientific ( BSX).
This article was written by a staff member of TheStreet.com.