AMGEN BUYS TWO DRUGS FROM ROCHE DEAL TAPS EUROPEAN MARKET.

Byline: Evan Pondel Staff Writer

THOUSAND OAKS - Amgen Inc. bought two of Roche's drugs for $137.5 million, the company said Wednesday, carving out a substantial foothold in Europe for the biotechnology giant.

The deal parallels Immunex Corp.'s agreement last week to sell its Leukine drug to Germany's Schering AG for $380 million. Leukine is similar to Roche's filgrastim and pegfilgrastim, the two drugs Amgen purchased that fight the immune-suppressing effects of cancer treatment.

Though analysts say Amgen's transaction with Roche has little to do with its pending $16 billion acquisition of Immunex, it could raise questions about the company's dominance abroad. Immunex said it was pursuing the sale of Leukine to eliminate obstacles in relation to Thousand Oaks-based Amgen's acquisition. Known as divestiture, Immunex essentially streamlined its product base so that regulators would look more favorably at Amgen's bid.

``But I don't think Amgen's deal with Roche will have any influence on Amgen's acquisition of Immunex,'' said Stefan Loren, analyst with Legg Mason in Baltimore.

He said even though Immunex sold Leukine to mitigate Amgen's market share for its proposed acquisition, picking up Roche's drugs should be perceived as a positive.

``This purchase allows the company to capture more of the market in Europe,'' Loren said.

In a similar vein, Roche is attempting to garner a greater market share in Asia. The Swiss company said it sold part of its European filgrastim and pegfilgrastim business amid the planned merger of its Japanese subsidiary with Chugai, another Japanese company.

Cory Kasimov, analyst with Gruntal & Co. in New York, said Amgen and Roche are serving each other's needs. ``And I remain optimistic about the Immunex deal being completed,'' he said.

Amgen popularized pegfilgrastim in the United States under the name Neupogen. Neupogen sales totaled $1.3 billion in 2001. Amgen won approval for a more powerful form of Neupogen called Neulasta in February. Analysts said the approval could push combined annual sales of the two drugs to $2 billion a year by 2005.

Loren said now that Amgen has regained its licensing of Neupogen in Europe, it will certainly add value to the company's earnings. However, Loren wasn't able to provide an estimate.

Amgen has made a significant marketing push for Neulasta in the United States, inking a deal with Rob Lowe, the actor from the hit television show ``The West Wing,'' to raise public awareness about a condition called neutropenia - an ailment that's brought about by chemotherapy.

The company signed Lowe as part of its By My Side campaign, which Amgen hopes will indirectly boost sales of Neulasta.

While Amgen now has the ability to market filgrastim in most European countries, Roche will continue to market the drug in Eastern Europe, the Middle East, Africa and Asia.

Amgen shares rose $2.61, or 5.6 percent, to $49.15 Wednesday.

Loren said the jump in Amgen's stock wasn't associated with its deal with Roche. Instead, he said the entire biotech sector has been trading in negative territory for several months.

``And it's about time that sector has moved higher,'' he said.