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Actionable news in BIIB: Biogen Idec Inc.,

M&A could help biotech keep rolling, traders say after Biogen rumors

The "Fast Money" traders said on Tuesday that mergers and acquisitions may keep pushing the biotechnology sector to new highs.

The iShares Nasdaq Biotechnology ETF (IBB) hit a high of $299 a share on Tuesday, its highest level since mid-January. The traders made their comments after Biogen shares jumped 9 percent Tuesday on a Wall Street Journal report of buyout interest from drug companies, including Merck and Allergan. A source later told CNBC that Allergan is unlikely to pursue the deal.

Trader Tim Seymour said that the Biogen deal "makes sense whether it happens or not."

He said, however, that M&A activity has been a part of the gains in the sector "for a long time." He explained that the industry saw less activity as it faced increased scrutiny from politicians and...