What happened

After a report surfaced stating that Spectrum Pharmaceuticals (NASDAQ:SPPI) is looking to sell itself, shares of the commercial-stage hematology and oncology biotech rose 13% as of 10:45 a.m. EDT on Tuesday.

So what

Bloomberg reporter Manuel Baigorri published an article today stating that Spectrum might be looking to sell itself. Baigorri noted that Spectrum has attracted takeover interest from fellow drugmakers, according to "people familiar with the matter."

Spectrum has hired financial advisers from Jefferies Financial Group to work with it on the potential sale of the business. However, at this time no decisions have been made, according to Bloomberg.

Businessman whispering into the ear of another businessman

Image source: Getty Images.

Traders are bidding up shares today in the hope that a takeover offer could soon be on the table. 

Now what

Spectrum's stock has been on fire for more than a year thanks to a steady stream of good news. Between growing sales of its product portfolio, positive late-stage clinical news for its breast cancer drug Rolontis, and an exciting new update for its potential lung cancer drug poziotinib, it is understandable why investors are excited.

However, it is important for investors to know that today's update hasn't been officially confirmed by the company. Since this may turn out to be nothing more than a rumor, potential investors should only buy if they are bullish on the long-term potential of the business.

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. The Motley Fool has a disclosure policy.