Amgen "outperform," target price raised - update

12.09.07 - Bear Stearns

NEW YORK, September 12 (newratings.com) - Analyst Mark Schoenebaum of Bear Stearns maintains his "outperform" rating on Amgen Inc (AMGN). The target price has been raised from $62 to $63.

In a research note published this morning, the analyst mentions that the CRDAC has voted against reducing the Hb target in dialysis/pre-dialysis to below 11. Although there is a risk of Medicare reducing its reimbursable Hb limit from 13 to 12, the probability of a worst-case scenario of a reimbursable cap at 10 or 11 seems limited, the analyst says. According to Bear Stearns, the CRDAC response raises the probability of the company generating an EPS of at least $4 through patent expiry without any contribution from its product pipeline.