Dendreon shares jumped 10 percent Tuesday in the wake of an analyst note that portrayed the Seattle biotech company as ripe for a lucrative partnership with Big Pharma.

Needham & Co.'s annual partnership report says that the number of partnerships in the biotech industry is poised to grow, according to Marketwatch. The report's authors estimate Dendreon is likely to seek a partner from outside the U.S. to help with the marketing and development of Provenge, its prostate cancer-fighting drug.

The report "triggered the rumor mill," says David Miller, an analyst at Seattle-based Biotech Stock Research. On Tuesday, Dendreon shares closed at $7.17, up 66 cents, or 10.14 percent.