AMGEN TO BUY BOSTON FIRM; TOUTS NEW DRUG.

Byline: Robert Monroe Staff Writer

THOUSAND OAKS - Biotech titan Amgen announced Monday that it will buy a Massachusetts pharmaceutical firm and its brain trust for $170 million.

In another development, the company said Aranesp, the successor to its flagship drug Epogen, is effective in treating anemia in cancer patients and continues to show therapeutic value for kidney dialysis patients.

``Everything looks good and as expected, the drug is going to do everything as advertised,'' said Stefan Loren, an analyst with Legg Mason.

Both developments presage the diversification of Amgen's product line, one that currently rests on the shoulders of Epogen and fellow billion-dollar best-seller Neupogen. Aranesp is up first, anticipating a December approval by the Food and Drug Administration.

The ability gained by the Kinetix buy has more long-term implications. It allows Amgen, whose major drugs are intravenous, to tap into development of small molecule drugs, which can be taken orally to control enzymatic activity.

Analysts said Kinetix's price tag is less significant than its symbolic value. It shows Amgen's willingness to tap into other companies' expertise in a market where brain power is at a premium.

``They're willing to look for good ideas anywhere,'' said Bob Kirby, an analyst with Edward Jones.

Loren said Kinetix's Medford, Mass., location is telling, too, since greater Boston is a locus for talented scientists and home to Amgen competitors. Amgen is building a research facility in nearby Cambridge.

Kinetix has 40 employees.

``Getting qualified scientists is not trivial in this market,'' said Loren. ``You have to use every weapon at your disposal for recruitment.''

In a statement, Amgen Chief Executive Officer and President Kevin Sharer said the deal ``demonstrates Amgen's strategy of supplementing internal (research and development) with external innovation.''

Analysts called the news about Aranesp from two weekend research conferences unsurprising but positive. Aranesp requires less-frequent dosing than Epogen, which is expected to make it popular among kidney dialysis patients.

Though it could be years before the FDA approves it for use among cancer patients, analysts said it could be prescribed ``off-label'' and become an immediate threat to Johnson and Johnson's Procrit, the only drug of its kind available now to those patients.

``The cancer market is the fastest growing potential markets,'' said Loren.

Amgen shares finished the day at $63.81, down $1.06 in moderate trading.