AMGEN STOCK DECLINES ON DOWNGRADE.Byline: Ben Sullivan Daily News Staff Writer Shares in biotechnology giant Amgen lost all the ground they gained last week and then some after a downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. from a Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. & Co. analyst Tuesday. Amgen shares dropped $4.937 to close at $60.625 after Goldman Sachs analyst May-Kin Ho cut the biotechnology company to ``market outperform'' from ``recommend list.'' In explaining the downgrade, Ho said Amgen shares would only reach the mid-$60s over the next 12 months. Tuesday's loss wiped out the $3.563 Amgen shares picked up last week after Business Week reported that chemicals conglomerate DuPont Co. was considering a $25 billion, or $95-a-share bid for the company. DuPont shares also took a drubbing Tuesday, losing $2.937 to close at $79.50. The prospect of a DuPont buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. seemed plausible to many last week. Amgen is experiencing slowed growth in sales of its two standard-bearer drugs and has no blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. products near completion to make up the difference. In addition, DuPont has said it plans to beef up its life sciences division, which currently generates about 18 percent of its revenues. Within five years, officials there say, drugs and biotechnology will account for one-third of revenues. But neither company has confirmed talks over such a deal and Tuesday's downgrade was enough to scare off Verb 1. scare off - cause to lose courage; "dashed by the refusal" daunt, frighten away, frighten off, scare away, pall, scare, dash intimidate, restrain - to compel or deter by or as if by threats many who had bet on an acquisition premium. Amgen shares have gained 21 percent so far this year. |
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