Amgen (AMGN) Could Feel Sting as Xgeva Competitor Takes Away Sales - Analyst
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Rating Summary:
12 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
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Amgen, Inc. (Nasdaq: AMGN) shares are still pressured Friday as broader market are on the rise again, as Leerink Swann issued comments on Xgeva.
Leerink noted that Xgeva is a key growth driver for Amgen with consensus sales estimated pegged at $826 million for 2013, about 32 percent growth. However, the firm cited a survey from MEDACorp which suggests that oncologists are less bullish on potential for the drug in the face of generic Zometa. Zometa is expected to come to market in March 2013.
In the survey, oncologists largely said the difference between Xgeva and Zometa was negligible, despite Xgeva having a label of clinical superiority. Just 28 percent of the respondents thought Xgeva was "significantly better" than Zometa.
Lerink also noted, "However despite perception of significant clinical differentiation by these oncologists, 60% of them felt comfortable administering Zometa to patients instead of Xgeva for reimbursement reasons. Of the 59% of respondents who described Xgeva as "incrementally better," 87% were comfortable to use Zometa instead of Xgeva for reimbursement reasons."
Oncologists also sees usage of Xgeva as flat over the next 12 months with the introduction of Zometa, although the absence of Zometa still has Xgeva use increasing about 10 percent, well below Leerink's projections of 18 percent. The Street expected growth of about 32 percent, much more robust when compared with actual survey results.
Leerink maintains a Market Perform rating on Amgen, setting a 12-month price target of $91 on shares. The stock is down 2.4 percent late Friday.
For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.
Shares of Amgen closed at $83.33 yesterday, with a 52 week range of $52.85-$85.28.
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Leerink noted that Xgeva is a key growth driver for Amgen with consensus sales estimated pegged at $826 million for 2013, about 32 percent growth. However, the firm cited a survey from MEDACorp which suggests that oncologists are less bullish on potential for the drug in the face of generic Zometa. Zometa is expected to come to market in March 2013.
In the survey, oncologists largely said the difference between Xgeva and Zometa was negligible, despite Xgeva having a label of clinical superiority. Just 28 percent of the respondents thought Xgeva was "significantly better" than Zometa.
Lerink also noted, "However despite perception of significant clinical differentiation by these oncologists, 60% of them felt comfortable administering Zometa to patients instead of Xgeva for reimbursement reasons. Of the 59% of respondents who described Xgeva as "incrementally better," 87% were comfortable to use Zometa instead of Xgeva for reimbursement reasons."
Oncologists also sees usage of Xgeva as flat over the next 12 months with the introduction of Zometa, although the absence of Zometa still has Xgeva use increasing about 10 percent, well below Leerink's projections of 18 percent. The Street expected growth of about 32 percent, much more robust when compared with actual survey results.
Leerink maintains a Market Perform rating on Amgen, setting a 12-month price target of $91 on shares. The stock is down 2.4 percent late Friday.
For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.
Shares of Amgen closed at $83.33 yesterday, with a 52 week range of $52.85-$85.28.
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