After the closing bell rang yesterday, Amgen (NASDAQ: AMGN) announced a second-quarter profit that increased 40% compared to a year ago. The company earned $1.29 per share compared to 84 cents per share a year ago. Not only did the pharmaceutical firm top its previous-year results, but it also outpaced the Street's estimated earnings of $1.16 per share.

Quarterly revenue dropped to $3.71 billion from $3.76 billion a year ago, but AMGN still topped the consensus revenue estimate of $3.58 billion. Total product sales for AMGN increased 1% when taking the impact of foreign exchange out of the equation. Looking ahead, AMGN forecast full-year adjusted earnings between $4.80 and $4.95 per share, far better than its earlier forecast of $4.55 to $4.75 per share and the Street's expected $4.57 per share.

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.

There were a few stocks in 2008 that exhibited great performance despite horrible market conditions. And these gems of 2008 may provide investors with a safe haven of sorts for 2009.

In fact, we are already hearing analysis of the year to come suggesting that biotechnology stocks will be the place to be for positive returns in the new year.

One such name to consider is Amgen (NASDAQ: AMGN).

Founded in 1980, AMGN is one of the largest biotechnology companies in the market. It has a stable of proven drugs that provides significant profits, and a pipeline of opportunities that should provide reasonable growth in the future.

Shares of AMGN have gained approximately 20% during the last year as investors recognized the value of current profits combined with future growth. Interestingly, the company really gained traction during the second half of the year as the rest of the market was imploding.

Even with the gains, AMGN is a compelling investment story.

Shares trade for 15 times trailing earnings and only 12 times forward earnings. That means you can buy shares for a price-to-earnings ratio that is lower than its growth rate.

One reason for the optimism in the stock in 2008 was the progress made on its osteoporosis drug, Denosumab. Analysts are expecting the drug to be a blockbuster.

Denosumab has done well in trials, and AMGN recently applied for FDA approval to bring the drug to market. Given the expected 10-month FDA review and processing period, AMGN is only a year or so away from the sales benefits of this new drug.

Amgen Inc. (NASDAQ: AMGN) is having a really good day today. Its shares closed up 12.17% to $60.48 (on a day markets were down in the neighborhood of 2%) after it said late Friday a study on denosumab, a bone-strengthening drug, met its desired results and showed statistically significant improvements over a placebo.

Amgen shares rocketed 17% at some point as denosumab has the potential to become a blockbuster drug, especially with women with postmenopausal osteoporosis, a market that could represent $8 billion and $10 billion by 2010. The strong study results also improve the drug's chances with FDA approval. Analysts just loved the results of the study (although the details won't be out until September), upgrading the shares and their target prices.

To top it off, Amgen reported second-quarter financial results after the close, beating analyst estimates. The biotechnology giant recorded net income of $941 million, or 87 cents a share, lower than last year's period, but excluding acquisition-related and stock-compensation costs, earnings rose to $1.14 a share from $1.13. Revenue rose 1% to $3.76 billion. Analysts forecast profit of $1.02 per share on revenue of $3.58 billion, according to a survey by Thomson Financial. Looking ahead, Amgen raised both its earnings and revenue guidance higher than what Wall Street expected. Analysts, in general, liked these results too.

Not all has been rosy with Amgen lately, as the sales of Aranesp, its anemia treatment and what is considered Amgen's most important product, show. Aranesp sales declined 13% on safety concerns. Sales of Epogen, the older treatment, also declined somewhat. Still the sales of both beat estimates.

Amgen's stock has already been punished for the Aranesp concerns throughout 2007, and has been recovering since, today hitting a 52-week high. Amgen showed better-than-expected sales across all products, even its under-scrutiny anemia drugs; it showed it's not resting and that it can and will recover. Combine that with the strong clinical trial results for denosumab, and the potential is great.

Amgen shares are up about 2.8% in after-hours trading to $62.15.