Dykstra: Take Aim Again on Amgen

Amgen(AMGN), which this column has featured previously, got a big slap on Thursday when an FDA panel committee decided that stronger warning labels, limited uses for patients and more safety testing are necessary for Aranesp, the company's No. 1 drug.

Amgen's anemia drug accounts for 28.6% of sales and right now, and it's hard to determine just how badly the FDA advisory committee decision will hit earnings.

But remember, Amgen is the largest biotech company, on the basis of revenue, in the world, and its numbers are still rock-solid. When you look at the numbers the company has posted quarter after quarter, it's hard to understand why it would get down to these levels.

That said, this issue may take some time to fix, and I could see the stock going down further. But company will rebound, because you don't get to be the No. 1 biotech company in the world without learning to survive a setback like this.

I don't want anyone to get confused -- Thursday's news was clearly a disaster. I'm not too sure just how long it will last, and analysts are downgrading the stock right and left, some even to sell from buy. This is a classic view of the operators on Wall Street in action; they are going to work to drive this stock into the ground.