Amgen Inc. (AMGN) shares surged a new 52-week high, as a result of the reported success of a massive pivotal trial of its bone drug Denosumab in reducing fractures in post- menopausal osteoporosis patients.

In the three-year study of 7,800 women, denosumab reduced the number of new fractures in the osteoporosis patients more than a placebo, as well as adding bone mass to the test subjects. Investors are counting on denosumab to be the next blockbuster for the company which has had two years of sales declines. Amgen will announce the complete data at the meeting of the American Society of Bone and Mineral Research in September.
The Thousand Oaks, Calif., biotech company has suffered plunging sales of the flagship anemia drug Aranesp after it was found to increase the risk of cardiovascular events, cancer progression and death in certain patients.
“From a Wall Street perspective, people looking at Amgen say, ‘This is it,’ ” Mark Schoenebaum, biotechnology analyst
“This was probably one of the greatest discoveries in bone physiology,” said Dr. J. Christopher Gallagher, professor and director of the bone metabolism section at Creighton University.
Analysts surveyed by Thomson Financial expect the company to report second-quarter earnings of $1.02 per share on $3.58 billion in revenues when it releases its results on Monday. Amgen is hoping to keep the good news coming.