Amgen's earnings were uninspiring. They missed revenue estimates on almost every drug they sell and lowered revenue estimates for the remainder of the year. They have a new blockbuster drug scheduled to be released but they didn't even seem very enthusastic about it on the conference call.
And the stock is rallying quite nicely today. That is what is nice about being a cheap stock. I have seen analyst reports showing that if Amgen never comes up with a new drug, the current value of future cash flows of existing drugs is worth about $70/ a share, even at a reasonably high discount rate. A takeover of Genzyme should help cushion any downside as well, as more cash is available to be deployed in the sector.