Is Amgen Stock Still a Buy After an Unexpected Reveal of Data?

Shares of Amgen (NASDAQ: AMGN) are down by 6% in the last 30 days as I write this -- a larger-than-normal amount for a large pharma company's stock to fall, especially considering that the market rose nearly 3% in the same period. The clear culprit for the drop is, quite regrettably for shareholders, an unintentional disclosure of clinical trial information that the market found to be rather unappetizing.But does that change the investment thesis for buying the stock, or is it just a blip?During clinical trials, especially those in phase 1 safety testing, investigators are obligated to capture a wide variety of biometric data, including for many factors that are of unknown or ancillary importance. If some of those factors end up containing questionable (but not alarming) safety signals, it's generally a lot better for the stock when a company discloses what it knows up front. The alternative is for either investors or regulators to find out during the drug's approval process. Or, in Amgen's case this time around, another alternative is for investors to find out at a random point in time and be left to rationalize whatever is discovered without useful context provided by management.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool