FAVORABLE FORECASTS FOR US BIOTECH

As 1991 drew to a close, analysts at US broker Alex Brown & Sons were looking at how some of the USA's biotechnology companies are shaping up. Amgen Inc is held up as the biotechnology industry's gold standard, and analysts Amy Bernhard Berler and Mara Goldstein say that Amgen should be a core holding in any biotechnology or drug portfolio.This is due to its excellent earnings potential from products such as Amgen's flagship drug Epo (erythropoietin) for the treatment of anemia associated with kidney dialysis, and Neupogen (granulocyte-colony stimulating factor), the white cell colony stimulant that fights cancer therapy-associated infections.

However, the analysts have expressed concern about sales of Neupogen in Europe. Sales in the region have been slow starting, and are likely to face stiffer competition than in the USA.

The analysts are also showing some concern over the potential impact on Amgen of the US Food and Drug Administration's review of US Bioscience's product, the chemoprotectant ethyol. They comment that publicity surrounding the FDA review may dampen appreciation in the near term and suggest that they must view their figures for Amgen in 1992 with a greater degree of risk than would be consistent with a "strong buy" recommendation, and reduce the recommendation to a "buy."