AMGEN WINNER IN COURT BATTLE DRUG MAKER MUST PAY $150 MILLION.

Byline: Gregory J. Wilcox and Evan Pondel Staff Writers

THOUSAND OAKS - Amgen Inc., the world's biggest biotech company, on Friday won a $150 million judgment against drug giant Johnson & Johnson but an arbitrator refused to terminate the license agreement between the companies regarding the blockbuster anemia drug Epogen.

New Brunswick, N.J.-based Johnson & Johnson said it will pay the award but will seek compensation from Amgen for its legal fees.

The suit was filed in 1995 and claimed that Ortho Biotech, a Johnson & Johnson subsidiary, breached its license rights by improperly making sales of erythropoetin, known as EPO, into Amgen's exclusive dialysis market.

``This is certainly a win for Amgen,'' said Jeff Richardson, an Amgen spokesman. ``The losses were substantial for Amgen and we hope this agreement sets a precedent.''

The arbitrator, former federal Judge Frank McGarr, found that sales had been made into markets where Amgen had retained exclusive rights, but that this did not warrant terminating the contract.

Instead, he ruled that Amgen could be adequately compensated with monetary damages.

That prompted Johnson & Johnson to claim victory.

``In rejecting Amgen's effort to terminate our license, Judge McGarr has sustained our long-established position and belief in our performance under this agreement,'' Johnson & Johnson spokesman Jeffrey J. Leebaw said in a statement.

He also said his company regrets McGarr's imposition of a monetary penalty.

``The isolated occurrences of inappropriate conduct that took place in the early 1990s were discovered and corrected by the company in 1993,'' the statement said.

Kevin Sharer, Amgen's chairman and chief executive officer, praised the arbitrator's decision.

``We are gratified that the arbitrator ruled in our favor and vindicated our serious concerns about Johnson & Johnson's wrongful activities,'' he said in a statement.

Amgen shares rose 33 cents to close at 50.48 on the Nasdaq market, while Johnson & Johnson declined 85 cents to close at $59.35 on the New York Stock Exchange on Friday.