Amgen (NASDAQ: AMGN) closed Wednesday at $59.50. AMGN shares rallied 13% on July 8 after announcing that a pivotal, Phase 3, head-to-head trial evaluating denosumab versus Zometa in the treatment of bone metastases in 2,049 patients with advanced breast cancer met its primary and secondary endpoints and demonstrated superior efficacy compared to Zometa. AMGN is scheduled to report Q2 EPS on July 27. AMGN July option implied volatility is at 32, August is at 36, below its 26-week average of 42, according to Track Data, suggesting decreasing price movement.

ISE Sentiment Index (ISEE) closed at 109 on 7/8/09. ISEE 10-day moving average is 119.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Health care stocks have held up very well during the recent market turmoil and one of the most stable has been Novartis AG ADS (NYSE: NVS ), a Swiss pharmaceutical company. Bloomberg reported yesterday that Novartis bone drug prevents fractures and lengthens life according to researchers:

"An annual infusion of Novartis AG's Reclast after a mild hip fracture helps prevent another broken bone and prolongs life in elderly patients, researchers said. The findings released today by the New England Journal of Medicine should bolster use of the drug. It generated almost $1.3 billion in 2006 under the name Zometa for treating cancer that has spread to the bone. U.S. regulators approved Reclast last month for postmenopausal women with osteoporosis."

Although the study was funded by NVS, there were few disputes about the results. There was also a limited controversy with some doctors declining to participate, saying they didn't feel right giving certain at risk patients in their 70s a placebo instead of one of the many exisiting alternatives