AMGEN SETTLES LAWSUIT PATENT RESOLUTION WON'T END DRUG MAKERS' BATTLE FOR EUROPE MARKET.

Byline: Evan Pondel Staff Writer

THOUSAND OAKS - Amgen Inc. and licensing partner Johnson & Johnson have settled a patent suit with Roche Holding AG and Genetics Institute, ending a decadelong squabble over the anemia drug EPO.

But while the settlement eases tensions among the four companies, it doesn't mitigate the battle for market share in Europe between Johnson & Johnson and Thousand Oaks-based Amgen.

``There is now concern about the threat that comes from Amgen and its emergence into oncology in Europe,'' said Sandra Hollenhorst, an analyst with Prudential Securities.

Currently, EPO, or erythropoietin, is found in Europe under different labels. Roche's EPO products include Recormon and NeoRecormon, while Johnson & Johnson markets Eprex and Erypo.

Those esoteric drug names translate to big business for Amgen, Johnson & Johnson and Roche, Hollenhorst said.

Of the $5.5 billion drug market in Europe for 2000, Johnson & Johnson controlled $2.7 billion and Amgen held $2 billion.

NeoRecormon alone, among the top-selling products overseas, had 2000 sales of 650 million Swiss francs, or $364.6 million, said Darian Wilson, a spokeswoman for Roche.

Just as Roche licenses the drugs produced by Genetics Institute, Johnson & Johnson has a similar arrangement with Amgen.

Many biotechnology companies partner with larger firms to improve their penetration in different markets, Hollenhorst said.

Before Amgen garnered enough strength to become a major player in the biotechnology arena, companies like Johnson & Johnson were valuable targets to ink deals with in an effort to improve a smaller company's outreach.

However, Amgen has grown since its 1980 inception to become a worldwide leader and doesn't need as much help from a larger company anymore, said Jeff Richardson, spokesman for Amgen.

``In the mid-1980s, for markets outside the U.S., we were in a very different place than we are today,'' he said. ``Now we're going at it on our own, instead of needing a partner.''

Last month, the European Commission approved Amgen's Aranesp, an anemia-related drug that treats chronic kidney failure in patients on and not yet on dialysis.

Though Aranesp has been approved for dialysis as opposed to oncological needs in Europe, Richardson said Amgen is working toward approval for both scenarios.

And if European regulators sign off on Aranesp for oncological use, it could pose direct competition for Johnson & Johnson and other drug companies.

``Aranesp is a drug that can be used to replace Eprex ... but it could take months to approve for oncology,'' Richardson said.

Despite Johnson & Johnson's brand recognition, Amgen said it has an advantage over Eprex because you don't need to administer the drug as frequently.

Richardson said instead of taking the drug three times a week, a patient might only need a shot of Aranesp once a week.

But as Amgen attempts to propagate its own products worldwide, Hollenhorst said Johnson & Johnson still dominates in oncology.