With Amgen generating a new and potential blockbuster drug, should you try to get in on the action?
Investor sentiment toward beaten-down Amgen perked up markedly this week after the company reported better-than-expected results from a trial of its experimental bone-protecting drug in patients with advanced breast cancer.
The results galvanized investors who have weathered a steady drum-beat of bad news related to the safety of its flagship anemia drugs.
"The results were better than anticipated and support higher revenue potential than previously expected," says Geoffrey Porges, an analyst at Sanford Bernstein. "Since Zometa is the most powerful agent in the existing bisphosphonate class, this represents a real breakthrough and sets a high bar for future competitors from other classes."
Separately, Geoffrey Meacham, an analyst at J.P. Morgan, said the results were enough to warm the heart of even cynical investors.
Considering the exciting advances, should you try and get in on the action?
In my opinion if you own Amgen I’d trim some gains and take a victory lap, says Deutsche analyst Mark Schoenebaum. After these results I think the stock gets stuck in a range in the low $60’s.
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