Sector Snap: Analyst Keeps Positive Biotech View

NEW YORK (AP) — A Morgan Joseph analyst reaffirmed "Buy" ratings for biotechnology companies Amgen Inc., ImmunoGen Inc., and Isis Pharmaceuticals Inc., citing their development pipelines.

Analyst Shiv Kapoor said the companies are trading at attractive valuations and have key catalysts coming in the next three to six months that could further drive shares higher.

"Amgen continues to trade at depressed multiples, in our view, despite the potential of its pipeline to drive industry-leading growth among its large cap peers," he said, in a note to investors.

He expects the presentation of positive study data from the developing osteoporosis drug denosumab and cancer treatment Vectibix later in September.

Shares of Thousand Oaks, Calif.-based Amgen rose 35 cents to $59.30 in afternoon trading.

He expects positive midstage study data on ImmunoGen's developing cancer treatment Trastuzumab-DM1 in the fourth quarter, along with continued interest from potential partners in the company's technology. Roche is a partner on Trastuzumab.

Shares of Waltham, Mass.-based ImmunoGen fell 12 cents to $7.44 in afternoon trading.

He expects Isis Pharmaceuticals to get a boost from late-stage study data on the developing cholesterol drug mipomersin in the fourth quarter. Additional study data should be available in the first quarter of 2010.

Shares of Carlsbad, Calif.-based Isis fell 16 cents to $15.32 in afternoon trading.

Kapoor also maintains positive ratings for Novato, Calif.-based BioMarin Pharmaceutical Inc., Cambridge, Mass.-based Genzyme Corp., and Foster City, Calif.-based Gilead Sciences Inc.