Proposed Reimbursement changes for ESAs Another Setback for Amgen (AMGN) - Goldman Sachs

Goldman Sachs reiterated their Sell rating on Amgen (NASDAQ: AMGN) today following the CMS proposal to change reimbursement for ESAs, which will have a negative impact on the company's Epogen.

Goldman's expects this to cut Epogen use by over 50% from 2010 levels. The firm said, "we see risk even to our Epo estimates (which are amongst the lowest on the Street) and expect the Epo decline to be likely faster and bigger." Goldman sees this as a negative for Amgen as it means more downward estiamtes revisions.

Goldman sees this news as a positive for buy-rated DaVita, Inc. (NYSE: DVA), as lowered Epo utilization could drive further upside to EBIT margin.

For more ratings news on Amgen click here and for the rating history of Amgen click here.

Shares of Amgen closed at $58.28 yesterday.

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