Amgen "neutral," target price reduced

14.03.08 - Robert W. Baird

NEW YORK, March 14 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Amgen Inc (AMGN), while reducing their estimates for the company. The target price has been reduced from $56 to $53.

In a research note published this morning, the analysts mention that the ODAC panel has voted in favour of including the use of ESAs in chemotherapy-induced anemia (CIA). The ODAC panel has, however, also voted in favour of limiting the use of ESA in patients who are in an early stage of the disease, while completely excluding its use in metastatic breast cancer treatment, the analysts say. Robert W Baird expects these restrictions to adversely impact the company?s Aranesp revenues, in case the FDA implements the ODAC recommendations. The EPS estimate for 2008 has been reduced from $4.34 to $4.18.