UPDATE: Bank of America Raises PO to $99 on Amgen After Omontys Recall
In a report published Monday, Bank of America reiterated a Neutral rating on Amgen (NASDAQ: AMGN), and raised its price objective from $97 to $99.
Bank of America wrote, "This weekend, AFFY/Takeda announced they were recalling all lots of their erythropoesis stimulating agent (ESA) Omontys from the market due to serious hypersensitivity reactions associated with the first infusion (0.2% total hypersensitivity, including approx 5 deaths). All patients previously taking Omontys are instructed to discontinue use. This news follows dialysis provider Fresenius' decision <2 weeks ago to close the Omontys pilot program. As we mentioned at that time, our AMGN model assumed Omontys as the preferred ESA at Fresenius starting in April. Given the recall, we are now increasing AMGN's ESA share in our model (2013 Epogen sales from $1.54B to $1.82B), bringing our total 2013 revenue up to $18.4B, and we view AMGN's 2013 $17.8-$18.2B revenue guidance as overly conservative."
Amgen closed Friday at $86.82.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.