AMGEN GETS GOOD MARKS THOUSAND OAKS COMPANY EXPECTED TO MEET EARNINGS EXPECTATIONS.

Byline: Evan Pondel Staff Writer

THOUSAND OAKS - For biotechnology giant Amgen, analysts expect third-quarter results released today to meet expectations following a flurry of developments in anemia drug Aranesp and continued strength in sales of Neupogen.

Analysts surveyed by Thomson Financial/First Call project earnings to fall in the range of 27 cents a share to 30 cents a share.

``They're still in a very good position because they have new products,'' said Elise Wang, a senior biotech analyst with Salomon Smith Barney in New York. ``I anticipate they'll come out on the high end of expectations.''

Neupogen, a drug used to prevent infection in cancer patients, saw sales increase by 10 percent to $340 million in the second quarter of 2001. Sales in anemia drugs Epogen and Aranesp reached $518 in the second quarter, a 5 percent increase from $493 million in the year-ago period.

``In the third quarter, Epogen as a franchise will be somewhat light, somewhat anemic, but Neupogen sales will probably be stronger, Wang said.

While it's too early for recently approved Aranesp to factor into the company's third-quarter results, the drug will invariably benefit Amgen's outlook, according to Wang.

In September U.S. regulators approved Aranesp, potentially opening the door to a multibillion-dollar market. The Food and Drug Administration approved Aranesp for dialysis and predialysis purposes only. However, Amgen has filed an application with the FDA for approval of Aranesp in an oncological setting.

On Wednesday, the company released data showing Aranesp performed better in women than in men who suffer from cancer-related anemia. The company said in those patients who achieved an improvement in hemoglobin, women had a 53 percent improvement in their fatigue scores compared with 15 percent for men. Amgen has filed for European regulatory approval of Aranesp for use by cancer patients.

As the company's European business has been a vital resource since the demise of U.S. markets, Fariba Ghodsian, an analyst with Roth Capital Partners Inc. in Los Angeles said the strong euro had little impact on the company's financials.

``The euro didn't hurt biotech companies,'' she said. ``The quarter has just been strong for the entire sector.

Investors are also awaiting the approval of Kineret, a drug that combats rheumatoid arthritis, a condition that leads to joint inflammation and bone erosion.

``The approval is any day now,'' said Michael Beckerich, a spokesman for Amgen.

Looking ahead, Dennis Harp, a biotechnology analyst with Deutsche Banc Alex. Brown Inc. in New York, said the company should maintain the strength seen in previous quarters.

The company reported a 6.4 percent increase in second-quarter profits for the period ended June 30.

Net income was $321.9 million, or 30 cents a share, on revenues of $986.7 million. In the prior year's second quarter, the company earned $302.6 million, or 28 cents share, on revenue of $914.4 million.

``And I think the company will perform well on the product development of Kineret,'' Harp said.

The company's sales should also remain immune to volatility on Wall Street as patients' health usually isn't compromised in times of economic weakness.

``Sales are almost always shielded from the economic downturn in terms of how patients consume drugs,'' Ghodsian said. As of Wednesday's close on the Nasdaq, Amgen declined $1.97, or 3.34 percent, to 57.08.