Wednesday, March 07, 2007

Calls of Note Part 2

- FBR notes that tomorrow, the generic biologic debate begins in earnest and Amgen's (NASDAQ:AMGN) revenue will come under fire from yet another angle. The Senate HELP committee hearing on follow-on biologics begins tomorrow at 10 a.m. Even if watered down, legislation sponsored by Representative Waxman is threatening to biologics-makers with looming patent expirations. Amgen's Epo patent expires in 2013, and the firm calculates that Epogen is worth roughly 25% less with generic biologic competition than without. With numerous headwinds, the stock's multiple does not appear to be poised for expansion from its current 14x. They are maintaining Market Perform rating and $65 price target.

Notablecalls: Let's see if AMGN can overcome these comments today. I suspect it can.

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