Robbie Stephens Keeps 'Buy' on Amgen

Analyst Michael King says the FDA's rejection of its Plenaxis drug should have little long-term impact for the drugmaker

Robertson Stephens reiterates its buy rating and the $77 one-year target on Amgen (AMGN ).

Amgen and Praecis Pharmaceuticals (PRCS ) received FDA non-approvable letter for Plenaxis, and analyst Michael King says while the news is psychologically negative, he believes its should have little long-term impact for Amgen. Plenaxis is one of four launches in 2001 to 2003. He views any weakness in Amgen shares as a buying opportunity. King notes Amgen and Praecis will further discuss with the FDA the necessary steps to be taken for approval. He believes Amgen's Aranesp drug is key to Amgen's future top-line and bottom-line growth, and will be larger than any of other products combined.

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