AMGEN CEO EXPECTS STRONG SALES, PROFITS.

Byline: Evan Pondel Staff Writer

HOLLYWOOD - Amgen Inc.'s top official said Tuesday that he expects the increase in the biotechnology juggernaut's product sales to exceed 30 percent in the next two years, stoked in part by strong demand for anti-inflammation and anemia drugs.

Kevin Sharer, chairman and chief executive officer of the Thousand Oaks-based company, also forecast that adjusted earnings per share would increase 25 percent through 2005. The earnings are adjusted as they do not include a charge of 15 cents to 20 cents a share associated with Amgen's purchase of Immunex. Sharer said he has no intention of pursuing another large acquisition or merger any time soon.

``We intend to remain independent,'' said Sharer to investors and analysts who filled a ballroom Tuesday morning at the Renaissance Hollywood Hotel. ``I don't like acquisitions. Occasionally, it's the right thing to do. But our strategy is to build on our unique position.''

Analysts say Amgen's position has been cultivated through its ability to meet expectations. The company has maintained its projection that 2003 earnings per share would increase by as much as 29 percent, hovering between $1.70 and $1.80. In 2002, the company earned $1.39 a share. Bill Tanner, analyst with Leerink Swann & Company, said he had thought Amgen might increase its earnings-per-share outlook.

``Fortunately, they didn't raise guidance,'' he said. ``The company already seems to be producing some pretty strong stuff.''

Anti-inflammation drug Enbrel possesses the greatest growth potential among Amgen's flagship products. The company expects Enbrel sales for the treatment of rheumatoid arthritis to increase 35 percent between 2002 and 2005 domestically. With Enbrel also poised to treat psoriasis, Amgen projects significant sales from the drug's dermatological indication. The company anticipates filing for regulatory approval to treat psoriasis with Enbrel later this year.

But Enbrel is not without competition. Johnson & Johnson has also proved a formidable player in the treatment of arthritis. The company manufactures Remicade, a therapy that combats Crohn's disease and rheumatoid arthritis.

Johnson & Johnson is in the process of acquiring biotechnology company Scios. Scios manufactures an experimental oral treatment for rheumatoid arthritis called SCIO-469. Remicade and Enbrel are both administered via injection. Tanner said the Scios drug is generating a lot of talk because it does not require an injection.

Yet another force for Amgen is Aranesp. Sales of the anemia-fighting drug hit $207 million in the fourth quarter. Domestic sales of Aranesp - Amgen's next-generation Epogen - are expected to increase by 20 percent in the next two years.

Johnson & Johnson's equivalent to Aranesp is Procrit.

When asked whether Procrit is Aranesp's greatest threat, Sharer said yes, ``but everyone needs competition.''

Amgen's rivalry with Johnson & Johnson recently peaked after an arbitrator intervened over an Epogen-licensing agreement. Amgen won a $150 million judgment against Johnson & Johnson for marketing violations. However, the arbitrator refused to terminate the licensing agreement between the two companies.

But the rivalry with Johnson & Johnson has become so fierce that Amgen officials projected a slide at Tuesday's business conference drawing a comparison between Aranesp and Procrit.

George Morrow, Amgen's executive vice president of worldwide sales and marketing, said the slide appeared on Johnson & Johnson's Web site, indicating that Procrit is far superior to Aranesp. ``But they (Johnson & Johnson) are using smoke and mirrors,'' Morrow said. ``And customers are aghast at the mischaracterization.''

To gain traction on Johnson & Johnson's market share, Amgen has several products headed toward the federal approval process.

Cinacalcet HCL is in development to treat kidney disease patients who suffer from hyperparathyroidism, a condition that could lead to bone deterioration. Amgen expects to file for regulatory approval of Cinacalcet in the second half of 2003.

Amgen plans to file for the approval of rHu-KGF in 2004. The product treats painful mouth sores found in cancer patients. Preliminary results from Phase III clinical trials have proved the product's ability to reduce the incidence and duration of oral mucositis. The condition is usually found in patients with blood-based cancers like lymphoma and leukemia.

Amgen shares rose 71 cents, or 1.34 percent, to close at $53.86 Tuesday on the Nasdaq market.