Finanacial Markets : Amgen Stock Rises Sharply on FDA Rumor
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Amgen’s stock climbed Wednesday in heavy trading on rumors that the Thousand Oaks biotechnology company would receive Food and Drug Administration approval today to sell its promising anti-anemia drug erythropoietin.
Amgen’s stock rose $1.625 to close at $40.125 on volume of 462,000 shares traded on the NASDAQ System.
Analysts have estimated the eventual size of the domestic market for EPO at $450 million to more than $1 billion a year.
Richard Bock, biotechnology analyst for Sutro & Co., said the widespread rumor Wednesday was that FDA approval of EPO was imminent and “judging by the price action on Amgen, that’s what is most likely.”
Engaged in Race
Amgen Chief Executive Gordon Binder said the FDA has called a press conference today to announce its approval of a new drug. Binder would not comment on whether EPO would be approved for sale.
Binder did say that both Amgen and FDA officials “have been working very hard, including over the holiday weekend.” EPO is Amgen’s first commercial drug.
Amgen is in a race with Chugai-Upjohn, a Chicago biotechnology rival that has submitted its own EPO application to the FDA.
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