Ahead of the Bell: Citi lowers Amgen target and estimates
NEW YORK—A Citi Investment Research analyst lowered his estimates and price target on Amgen Inc. shares Friday, saying sales of key drugs are threatened.
Amgen reported first-quarter results late Thursday. Profit was higher than analysts expected and revenue declined slightly, matching Wall Street estimates. Sales of Amgen's anemia drugs Aranesp and Epogen fell due to safety concerns and restrictions on their use, along with Medicare reimbursement cuts.
Along with those issues, analyst Yaron Werber said sales of anti-inflammatory disease drug Enbrel could be hurt by growing competition. Aranesp sales were weaker than he expected, and he wrote in a note to investors that competition from Roche's drug Mircera -- currently barred from the U.S. market -- could also reduce revenue.
Werber lowered his 2008 and 2009 revenue estimates, and pared his price target to $50 per share from $55. While sales are down, he said the Thousand Oaks, Calif., company is cutting costs to try to maintain its profits.
