BIG WIN FOR AMGEN; LEGAL VICTORY IN ANTI-ANEMIA DRUG BATTLE MAY BOOST STOCK PRICE, ANALYSTS SAY.Byline: Dave McNary Daily News Staff Writer Stock of biotechnology giant Amgen Inc. could surge Monday in the wake of a stunning arbitration victory over rights to a new version of its flagship anti-anemia drug. Amgen announced after the markets closed Friday that a Chicago arbitration panel arbitration panel A group of individuals charged with resolving a dispute between individuals and/or organizations. Arbitration panels to resolve investment disputes are sponsored by self-regulatory organizations such as NASD. has decided Amgen will keep all rights to its yet-to-be-approved version of Epogen, NESP NESP Neuroendocrine Secretory Protein NESP Navy EHF SATCOM Program NESP Nurse Educator Scholarship Program NESP Navy EHF Satellite Program NESP National Environmental Studies Project NESP National Education Supercomputer Program . Shares of the company gained $2.0625 to hit an all-time high of $88.125. ``This is a huge win for Amgen,'' said James McCament, editor of the Medical Technology Stock Letter. ``Assuming the news has not leaked out to investors this week, the ruling is worth a 10 percent gain in the stock price.'' The ruling cleared a dispute Amgen had with drug maker giant Johnson & Johnson. Amgen claimed it had invented the new drug but Johnson & Johnson contended its 1985 licensing agreement with Amgen gave it the right to sell NESP, which can be used once a week rather than the three-times-a-week dosing currently needed for Epogen. Under the 1985 agreement, which gave Amgen a badly needed cash infusion, Johnson & Johnson obtained the rights to sell Epogen for all uses in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. except kidney dialysis Dialysis, Kidney Definition Dialysis treatment replaces the function of the kidneys, which normally serve as the body's natural filtration system. , along with all uses in every overseas market except China and Japan. Sales of the red-cell booster started in 1989; worldwide 1997 sales of Epogen amounted to $3.3 billion with about half that for dialysis patients. Analysts said the introduction of NESP will have two effects - expand the market for the anti-anemia compound and shift market share away from Johnson & Johnson to Amgen. ``They have a ready-made blockbuster,'' said analyst Franklin Berger of J.P. Morgan Securities, noting that most of the growth for Epogen and NESP should come in more profitable non-dialysis uses. ``If you had to inject yourself three times a week, wouldn't you prefer doing it once a week?'' asked analyst Mairev Chovav of Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , who rates Amgen a ``strong buy.'' ``This ruling will give Amgen access to markets that they had been contractually precluded from entering.'' Chovav, who predicted Amgen shares will rise Monday by more than $3, said Amgen may be able to get NESP to market in the year 2000. ``I'd say it will be available in 2001, to be on the safe side,'' she added. McCament said Johnson & Johnson's prospects are dim for overturning the decision, adding, ``Periodically, companies take these to court, but they win very seldom.'' Amgen announced in October that research showed NESP was safe and effective for dialysis patients. The drug is currently in final, or Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA , human trials for that use, along with early trials for predialysis patients. ``We are very pleased with the arbitrators' decision and now look forward to focusing our efforts on the continued development of this promising new drug to treat patients suffering from the debilitating de·bil·i·tat·ing adj. Causing a loss of strength or energy. Debilitating Weakening, or reducing the strength of. Mentioned in: Stress Reduction effects of anemia associated with chronic renal failure chronic renal failure Chronic kidney failure Nephrology A slow decline in renal function, which may be 2º to chronic HTN, DM, CHF, SLE, or sickle cell anemia and, if extreme, leads to ESRD, mandating kidney dialysis; an abrupt decline in renal function may be , cancer and other diseases,'' Gordon Binder Gordon Binder is currently managing director of Coastview Capital, LLC, and previously was chairman of Amgen[1]. He joined Amgen in 1982, and previously had executive roles at the United Geophysical Corporation and the System Development Corporation. , Amgen's chairman and chief executive officer, said in a statement. |
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