Amgen and Peregrine Under StockCall Scrutiny: Pharma Stocks Deal with Drug Developments and Patents
LONDON, February 6, 2013 /PRNewswire/ --
Pharma stocks performed fairly well lately. However, the main concern for all the major companies was related to the patent expiry of their blockbuster drugs. Amgen Inc. (NASDAQ: AMGN) is about to lose its patent exclusivity for its cancer drug Neupogen. However, the sector is also witnessing good merger and acquisition activities, where big players are acquiring smaller companies in order to make up the losses sustained through patent expirations. Smaller biotech companies are also betting big on developing drugs for various cancers, though the prospects do not look so bright. StockCall analysts have released their latest round of technical research on Amgen and Peregrine. This free research can be accessed by signing up now at
Amgen Provides Optimistic Projections
Amgen recently reported positive results for the fourth quarter. Its revenue grew 11.25 percent to $4.42 billion while its adjusted net income stood at $1.40 per share, beating consensus estimate of $1.39 per share in quarterly net income. Amgen expects its FY 2013 adjusted earnings to be in the range of $6.85 and $7.15 per share, while revenue is likely to be in the range of $17.8 billion and $18.2 billion, in comparison to $17.3 billion in revenue it earned for FY2012. Thus, while the company is likely to report better results, but the rate of growth is likely to be a little muted. However, Amgen surpassed consensus estimates for the projections. Register today and read our free technical report on Amgen at
The company also successfully conducted phase 3 of its cancer drug Neulasta. Amgen draws a big chunk of its revenue from Neupogen franchise. However, the drug would go off patent protection by the end of 2013 and the loss of exclusivity is expected to affect Amgen. Neupogen faces stiff competition from the companies like Novartis in the markets outside of the U.S. and these competing companies may launch their products in the U.S., causing further damage. However, the company has somewhat strong drug candidates including AMG145, a cholesterol drug candidate.
Amgen stock grew over 25 percent in the past 12 months. It also offers good dividend yield of 2.17 percent. The company is likely to increase its dividend in the future, thus offering good returns to the investors. Amgen is also growing through acquisitions as it recently completed the purchase of Icelandic company decode Genetics.
Peregrine Struggles with Cancer Drug Development
Peregrine Pharmaceuticals Inc. specializes in developing therapies for viral infections. It also develops treatments for cancers. It is currently engaged in developing treatment for non-small cell lung cancer. If successful, the company will make big fortunes as non-small cell lung cancer accounts for about 80 percent of lung cancer cases. However, the company does not have very solid track record. The drug candidate bavituximab has been controversial as it led to the stock's massive tumble in September 2012. Sign up to download the free technical analysis on Peregrine Pharmaceuticals at
Peregrine is a small company with the market capitalization of less than $300 million. The stock is quite volatile as well. The company is currently looking to get past the phase II for bavituximab. Overall, the stock may be held if it is already in your portfolio. On the upside, the stock is currently trading about 50 percent below its 52-week high, thus in case of positive news on its lung cancer drug, Peregrine stock has massive upside.
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