ON MAY 10, 2007, the U.S.
Food and Drug Administration held a nine-hour meeting over potential
labeling changes for Aranesp, Amgen's best-selling drug, used to treat
chemotherapy-induced anemia. Restrictions could annihilate sales at the
Thousand Oaks, Californiabased biotechnology giant. Early the next
morning hedge fund managers were scrambling to determine the impact the
meeting would have on the company's shares, and sell-side analysts were
frantically penning notes to their clients. But 300 hedge fund managers
and other investors were already deep in discussion of the matter with
Bear, Stearns & Co. biotech analyst Mark Schoenebaum, who pointed
out that the tighter
restrictions endorsed by the FDA would have reduced U.S.
sales of Aranesp by at least $700 million in 2006. Yet he stood behind
the outperform rating he had on the stock, which was up 1.4 percent by
the end of October. Over the past 18 months, Schoenebaum has thrown