Amgen is a stock that has been in my portfolio many times in the past few years as it was the first biotech company to reach a ridiculously cheap valuation. It would seem an obvious choice in playing a Genzyme takeover as it is the largest component of every biotech index and when the Genzyme cash comes rolling in it is sure to benefit.
While Amgen is a good choice as well, there are a few reasons I chose to go with Gilead. Gilead has been crushed lately while Amgen has held in relatively well making the valuation very similar. The difference is that Gilead is doing a very aggressive buyback while Amgen completed one in March and does not have as much onshore cash available. Additionally, sentiment on Amgen has been positive and I am more worried about an earnings disappointment.
All in all Amgen seems like an excellent choice but I want to wait until after earnings tonight before starting a position.