Amgen (AMGN) rose 2% early Wednesday after a Food and Drug Administration advisory panel rejected a rule that would have reduced top dosages of the company's anemia drugs.
Amgen rose 90 cents to $54.78 after UBS upgraded the stock to neutral from sell, saying the FDA panel's move lifts a cloud over the company's lucrative Epogen and Aranesp franchises. The decision also offers a lift to
Johnson & Johnson
, which sells the anemia drug Procrit.
Sales of the drugs have fallen since concerns about cardiovascular health issues surfaced in March. Both companies have recently set broad restructuring plans in a bid to bring costs down.