AMGEN POSTS BIG 4TH QUARTER SALES LEAD TO TRIPLING IN PROFITS.

Byline: Evan Pondel Staff Writer

THOUSAND OAKS - Biotechnology monolith Amgen reported Thursday that its fourth-quarter profit almost tripled, stoked by strong sales of anti-anemia drug Aranesp and immunity-booster Neulasta.

The Thousand Oaks-based company posted a net income of $456.4 million, or 34 cents per share, compared with a profit of $163 million, or 15 cents per share, in the fourth quarter a year ago. Total product sales increased 66 percent in the quarter, to $1.6 billion from $974 billion a year ago. The company attributed much of its strength to the Immunex acquisition. Several new products have also been a boon for the biotech firm.

``They (Amgen) certainly inspire confidence,'' said Cory Kasimov, analyst with Ryan Beck & Co. in New York. ``We were expecting a positive bump in sales to help the company.''

The upbeat results arrived on the heals of positive news surrounding Amgen's rHu-KGF, a product that treats painful mouth sores found in cancer patients. Preliminary results from Phase III clinical trials 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.

``These results bode well for the company,'' Kasimov said. ``This product could easily be a major force for Amgen once it's approved by regulators.''

Amgen shares rose 99 cents to close at $53.49 Thursday on the Nasdaq market. In after-hours trading, Amgen was down $1.11, or 2.1 percent, to $52.38.

Of the company's flagship products, Neulasta sales reached $212 million in the fourth quarter. The combined sales of Neupogen, used to decrease infection that can occur from many types of cancer chemotherapy treatments, and its next generation counterpart Neulasta, which requires fewer doses, are expected to range between $2.1 billion and $2.3 billion in 2003. Neulasta will account for more than half of that.

``And we look forward to continued strong results in 2003 as we see the top line acceleration of recently approved and acquired products,'' said Kevin Sharer, Amgen's chief executive officer and chairman, in a statement.

Amgen's Aranesp saw sales hit $207 million in the fourth quarter. Considered Amgen's pre-eminent product, Aranesp is the company's next-generation Epogen. In addition to Eprex, Johnson & Johnson markets anemia drug Procrit. Although these drugs have completely different structures under a microscope, analysts say Aranesp still has a significant advantage over the other anemia products.

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. But the arbitrator refused to terminate the licensing agreement between the two companies.

Amgen received federal approval in July to treat cancer patients with Aranesp. Sales of the drug increased 29 percent to $672 million in the third quarter of 2002 from $520 million for the same period a year earlier.

Enbrel is yet another product that continues to bolster Amgen's bottom line. The anti-inflammatory drug saw sales of $204 million in the fourth quarter.

Amgen snatched Enbrel upon its acquisition of Immunex. The FDA approved Amgen's Enbrel manufacturing facility in Rhode Island last month, eliminating potential shortages of the drug.

Amgen recently announced the successful completion of a study in which Enbrel effectively treated psoriasis. ``But the company was very quiet about this phase of its clinical studies for competitive reasons,'' said Jennifer Chao, analyst with RBC Capital Markets in New York.

Enbrel is up against several other products to treat psoriasis. Cambridge, Mass.-based Biogen Inc. is expected to receive federal approval for its Amevive drug, which treats moderate to severe psoriasis. Despite an FDA advisory committee's recommendation to approve Amevive, there have been concerns that the drug might heighten the risk of infection in some patients.

Enbrel and Amevive differ in their dosing frequencies. Chao said Enbrel must be taken frequently, one or two doses a week. But patients might be able to receive a dose of Amevive that could last for seven months.

Looking ahead, total product sales for 2003 are expected to be in the range of $6.7 billion and $7.2 billion, the company said.

Earnings per share are expected to be between $1.70 and $1.80. A survey of 27 analysts polled by Thomson Financial/First Call concluded next year's earnings per share would be $1.65, compared with this year's earnings per share of $1.21.