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VIDEOWhy Amgen's Earnings Will Be Feeling No Pain
By
Justin Sharon
Jul 27, 2009 9:25 am
World's biggest biotech company set to report.
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One to watch: Amgen (AMGN) releases second-quarter results after the close.
The world’s biggest biotech company did $15 billion in global sales last year on the back of market leaders including Enbrel for arthritis. But its anemia blockbuster Epogen is 20 years old, and an aging product portfolio contributed to anemic net income growth in ‘08. Other concerns include generic competition and reimbursement restrictions, so Amgen’s stock (if not its products) aren’t for widows.
That being said, its pipeline is promising, with particularly high hopes for Denosumab to treat osteoporosis. The shares soared 16% -- their biggest gain in 4 years -- earlier in the month, after a successful late-stage trial for the product. Key dates for the diary are August 13 -- when an advisory panel rules on its safety -- and October 19, the date by which an FDA approval decision is expected.
What just happened: Last week saw all 3 major averages hit highs for the year, with the Dow recording its best 2-week spell since March 2000. Incidentally, that was the very month NASDAQ topped out at 5,048, for those searching silver linings for dark clouds. Indeed the snapping of NASDAQ's 12-day streak on Friday started a trend as the Yankees winning run ended at 8 on Saturday, 24 hours before Lance Armstrong’s triumphant spell in France stopped at 7.
And 6 banks were seized in Georgia -- the state in America, not the country in Caucasia -- bringing the number of US bank failures this year to 64.
What’s happening: Asia ended up and Europe is trading higher, although Ryanair shares are down sharply after issuing an ominous outlook; better think twice before visiting its bathrooms. Here at home, futures are steady ahead of another whirlwind week in earnings.
What will happen: On the economy, new-home sales for June are out at 10:00 a.m. Eastern time. In corporate news, we’ll be learning about earnings from ACE Limited (ACE), Aetna (AET), Corning (GLW), Honeywell (HON), Lorillard (LO), Masco (MAS), Plum Creek Timber (PCL), RadioShack (RSH), Sohu.com (SOHU), Tellabs (TLAB), Torchmark (TMK), Travelzoo (TZOO), Veeco (VECO), Verizon (VZ), and W.R. Berkley (WRB).
Happenstance: As we enter the dog days of August, today’s Journal has on its front page an article entitled: "‘Blue Dogs’ Resisting Health-Care Vote." Indeed, suddenly Fido is everywhere: The recent passing of Taco Bell’s (YUM) iconic advertising chihuahua Gidget garnered publicity galore amid echos of Rin Tin Tin. The German Shepherd appeared in 26 movies for Warner Brothers; some said he saved the studio from bankruptcy.
No positions in stocks mentioned.
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