Piper Jaffray Postive on Amgen After FDA Releases Briefing Documents on Xgeva

Piper Jaffray has published a research report on Amgen

after the FDA released briefing documents ahead of an Advisory Committee meeting on Xgeva. In the report, Piper Jaffray writes, "Based on our review of the briefing docs, we would assign <50% probability for positive panel recommendation (Feb. 8, 2012), given questions surrounding clinical benefit (4.2 month median increase in bone metastasis-free survival) and higher incidence of osteonecrosis of the jaw (ONJ) seen with Xgeva. Approval is not included in our or Street estimates and we note that AMGN shares have underperformed on a relative basis heading into the panel. Based on our physician survey, CRPC could add $1bn to our and Street models, supporting upside in AMGN shares of 7-10% if panel votes in favor of approval. Given the prospects for minimal additional downside, we would recommend owning shares heading into the panel meeting." Piper Jaffray maintains its Neutral rating and $74 price target on Amgen, which is currently trading down $1.72 from Friday's $69.28 closing price.