Amgen shares recover slightly after spate of bad news: Thousand Oaks company cedes title as largest to Genentech.

IT's an indication of how desperate Amgen Inc. investors are these days that what normally would have been considered disappointing results from a study of its leading anemia drug was perceived as good news last week, sending share prices upward. At least the drug, Aranesp, hadn't killed anybody, Wall Street may have been thinking.

The Thousand Oaks company had hoped that the study, released April 19, would show that Aranesp improved survival rates by making a type of lung cancer more vulnerable to chemotherapy. That outcome would have enabled the company to make stronger claims for the drug--currently only approved by Food and Drug Administration for treating chemotherapy-related anemia, which weakens cancer patients.

The study, however, didn't show a measurable benefit. But on the bright side, the study didn't indicate that Aranesp increased risks for death, blood clots, strokes and heart attacks, something that other studies in recent months have suggested.

In addition, the lung cancer patients experienced few adverse side effects and a significantly lower risk of blood transfusions.

That conclusion is a silver lining may alleviate recent safety concerns over the entire class of Amgen drugs, which includes Aranesp's predecessor Epogen.

Those concerns began with a study released in January that showed giving Aranesp at higher-than-recommended levels to cancer patients not undergoing chemotherapy may promote tumor growth.

FDA staff last month added warnings to the labels of both Arnesp and Epogen after various studies showed using too much of the drugs increased risks for chronic kidney failure patients. The warning label called for doctors to use the lowest possible dose of the drug.

An FDA expert panel is scheduled to review the drugs next month, which could result in further restrictions.

Amgen closed at $62.32 on April 19, up 4 percent on news of the latest study after jumping 6 percent earlier in the day. However, Amgen shares have been so battered by bad news this year that the company long considered the world's largest biotech by market cap recently ceded the title to South San Francisco rival Genentech Inc.

Next up for investors is how all the negative news has impacted Amgen's financials, with the company is scheduled to announce first quarter earnings on Monday. Aranesp and Epogen accounted for nearly half of the company's $13.9 billion revenues last year.

Further FDA restrictions will impact potential sales growth for both Aranesp and Epogen, though the first quarter impact could be minor. Joel Sendek at Lazard Capital Markets is forecasting a 3 percent decline in Aranesp sales compared to the fourth quarter, according to his survey of physicians.