Lazard Sees Strong Growth for Genzyme

4/1 - "Amgen, Inc. (AMGN), a global biotechnology company, is focused on the development and commercialization of human therapeutics. The company's key products are Epogen/Aranesp (anemia), Neupogen/Neulasta (neutropenia) and Enbrel (inflammatory disease). Recent negative events surrounding lead product Aranesp have punished the shares greatly."

"Based on our 2008 through 2012 model, the 5-year earnings CAGR of 6% is generally in-line with that of most large-cap pharmaceutical companies. Yet it is well below some of the larger biotechnology peers, which should deliver 12-15% growth over the same time period. That should help investors value the stock on a multiple basis. The biotech group currently trades at around a 1.7x PEG. Applying this valuation metric to Amgen, we arrive at a P/E of 10x. That is not coincidently exactly where the stock is trading right now."

"We see fair value at $48 or 11.5x our 2008 EPS of $4.22. We encourage long-term investors to purchase the shares at today's price. We view Amgen as a core holding within the sector."

3/20 - "When markets get crazy you can sometimes pick up world-leading companies at extraordinary prices. I believe that type of opportunity exists right now in Amgen (AMGN)...Not only are (Amgen shares) absolutely low priced but the current P/E is just 10.4x median EPS projections for 2008...Sales and earnings are both likely to hit all-time highs this year so I see no reason for these shares to remain at such a depressed valuation."

"With consensus estimates of $4.00 for this year a return to even 17 times that number would bring Amgen shares back to $68 or up $28.00 [+70%] from today's price."

4/2 - "We are maintaining our 2-Equal weight rating on shares of BIIB ahead of 1Q08 earnings results....BIIB is expected to report 1Q08 operating results over the next few weeks with primary focus on MS market dynamics for lead products Avonex and Tysabri. IMS prescription data suggest a sequential decline in Avonex sales to $485M from $503M and below Consensus of $494M. Tysabri sales are more difficult to gauge although 5% growth in IMS prescription trends would suggest $135M in WW sales which is in the mid point of a wide $100-150M Consensus range"

"We continue to believe that BIIB guidance for 20% EPS growth will be difficult with Avonex contributing 60% of sales and with trends declining. While sequential growth for Tysabri continues, we remain concerned regarding emerging competition from potentially more potent biologics like Campath."