Another ‘Fallen Angel’ from Cramer on CNBC’s MAD MONEY is Amgen (AMGN-NASDAQ) after it got crushed last week. He said this is much to do about nothing. The headline risk was that Aranesp was causing deaths and while it was scary it wasn’t the blow-up because the patients all were active cancer patients that were no longer taking chemo or undergoing treatment. The $4.30 to $4.50 per share guidance is very acceptable considering they are conservative. The earnings growth is more than the negatives. Amgen is also on the offensive against Roche on a patent case. The pipeline has an Imclone competitor and the Phase III bone drug could be a big blockbuster. He thinks this is the second best drug play in the world behind Genentech and all the bad news is behind it.
This one is the one we noted last week that is no longer comparable to biotechs and it is trading like a plain jane drug stock. AMGN traded up 1.25% to $70.85 in after-hours trading.
Jon C. Ogg
January 29, 2007
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