BIOTECH GIANTS GETS BIGGER.Byline: Gregory J. Wilcox and Evan Pondel Staff Writers THOUSAND OAKS Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. - Broadening its dominance of the biotechnology sector, Amgen Inc. said Wednesday that it will pay $2.2 billion for smaller rival Abgenix Inc., which is developing several drugs with blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. potential. Amgen executives said in a conference call that Fremont-based Abgenix's colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. drug panitumumab could eventually contribute $2 billion annually to its revenue stream, but didn't provide a timetable. After buying Immunex in 2002, Thousand Oaks-based Amgen began working closely with Abgenix on a development and commercialization strategy for panitumumab. Buying the company gives Amgen ownership of panitumumab and frees the company from paying royalties on denosumab, another Abgenix drug that is being studied to treat a wide range of bone-loss conditions, including osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia , cancer and rheumatoid arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. . ``Abgenix is a natural, strategic fit for Amgen given our strong existing relationship,'' said Kevin Sharer, Amgen's president and chief executive officer. Abgenix shareholders will receive $22.50 a share, a 54 percent premium over its closing price Wednesday of $14.65. Amgen expects the acquisition to reduce earnings in the next two years, but says that will likely be offset by the eventual profits from panitumumab. Amgen has high hopes for the drug, which will also be targeted at head and neck cancer. In early November the company announced results of a phase-three study that showed panitumumab to perform better than expected in treating colorectal cancer. The drug was given to patients who had already undergone several rounds of unsuccessful chemotherapy. After panitumumab, some patients' tumors shrank shrank v. A past tense of shrink. shrank Verb a past tense of shrink shrank shrink significantly. And it extended the expected life span of some, the company said. Full test results will be released in the first half of next year. This week, Amgen plans to submit its marketing application to the federal Food and Drug Administration and finish that process in the first quarter of 2006. Amgen will also seek a priority review to speed up the approval process because the drug showed such promising results, said company spokeswoman Trish Hawkins. ``People with this type of cancer have very few treatment options,'' she said. The company also plans to initiate studies on head and neck tumors early next year. Abgenix has a 100,000-square-foot manufacturing plant and 450 employees, most involved in the manufacturing process. Amgen plans to retain all those workers. A decision on the other workers will be made later. ``The immediate economic benefit to Amgen ... is that it would not have to share half of the profits of panitumumab with Abgenix,'' said Matthew Murray Matthew Murray was a steam engine and machine tool manufacturer, who designed and built the first commercially viable steam locomotive, the twin cylinder The Salamanca in 1812. Early years Matthew Murray was born in Newcastle-upon-Tyne in 1765. , senior biotechnology analyst with Rodman rod·man n. One who carries and employs a leveling rod under the supervision of a surveyor. and Renshaw in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . He also believes the deal creates economic value for investors because of tax savings, personal efficiencies and broader use of the Abgenix antibody technology within Amgen's research and development pipeline. And while Murray said Amgen sometimes has been too aggressive estimating new product sales, the company might be too conservative with panitumumab. ``I think that overall sales of panitumumab will be much larger than $2 billion.'' he said. Amgen shares closed Wednesday at $76.78, down 68 cents, but rose $1.40, or 1.8 percent, in late trading Late trading Late trading of mutual fund shares occurs when investors placing trades after 4 PM receive the 4 PM price. These late traders can use the information revealed after 4 PM to guide their trades: buying funds when their current value is greater than their 4 PM value and . Gregory J. Wilcox, (818) 713-3743 greg.wilcox(at)dailynews.com |
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