Amgen (Nasdaq:AMGN) Shares Soar on Xgeva Study Results

The recent study which concluded men who took denosumab (branded as Xgeva) had the spread of cancer halted in going into their bones, has boosted the share price of Amgen (Nasdaq:AMGN) on the possibilities it may bring to men with prostate cancer, and people with othe forms of cancer as well.

Some have really jumped on the bandwagon on this, as Eric Schmidt, a Cowen & Co. analyst in New York, said it could add up to $2 billion in sales annually to Amgen.

Participants in the study had a delay of cancer spreading by 4.2 months, although it had no effect upon living longer.

Another potential use would be to prevent the spread of breast cancer from moving into the bone, which Schmidt said would add another $2 billion in sales annually for the company, above and beyond the prostrate cancer sales.

The drug was recently approved for using to reduce fractures after tumors had traveled to bones.

This is the first drug which has ever shown it can stop the spread of cancer to bones, causing a lot of excitement, but caution as well, with media reports already hyping it beyond reasonable expectations in light of the need for further studies, confirmation, and improvement.

Studies are already underway for breast cancer, with results expected to be released in 2016. With the prostate findings, expectations are high that it'll help in regard to breast cancer as well.

Amgen closed Tuesday at $56.76, up $2.65, or 4.90 percent. Trading volume was close to 4 times the usual 3-month daily average.