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Fast Money

World's Biggest Biotech

Amgen, the biggest biotech by revenue, is trying to regain investors' confidence after a 32% drop in the last year. Is this a smart trade?

Amgen CEO Kevin Sharer joins the panel for this conversation. Following is a summary of his main points.

“We’ve got a company that’s stabilized form last year’s difficulties,” says Sharer. “We’ve advanced our pipeline and there are two key events coming up. One is an FDA panel in about a month and the other is a phase 3 clinical trial on osteoporosis that will be revealed in August. Those are really important events for us.”

In dollar terms, can you define each of those events?

“The FDA event could be modest or major,” says Sharer, “but the phase 3 osteoporosis drug could be a multi-million dollar revenue event for our company. We worked on it for 15 years and invested a billion dollars in it. It’s a big deal.”

What does the drug do?

“It’s for osteoporosis and it can also be used to treat cancer,” replies Sharer. “So it has double blockbuster potential.”

How likely is it that the drug will make it to market?

“So far so good,” says Sharer. “If it works the way we think, it should be well received.”

March 12th  and 13th are big days for your company. What’s happening?

“We’re going to have a new drug evaluated for cancer,” replies Sharer “and have the risk benefit of another drug evaluated. One’s a drug approval and the other is a safety of a current drug.”

Traders what do you think of this stock?

The pipeline intrigues me, says Pete Najarian.

I don’t see a lot of downside in this name, says Guy Adami. I recommend owning it into March 12th.

Sector Trades: Biotech

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Trader disclosure: On Feb.12, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO), (DIS); Najarian Owns (BIIB), (C), (CSCO), (MCD), (MS), (MSFT), (YHOO), (XLF); Najarian Owns (AAPL) Calls; Najarian Owns (FRE) Puts; Finerman Owns (GS); Finerman's Firm Owns (AAPL), (GE), (MSFT), (WMT), (YHOO); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (SPY), (IJR), (IYR), (MDY), (IWM); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts

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