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JOHNSON & JOHNSON ANNOUNCES AMGEN ARBITRATION DISPUTE

 JOHNSON & JOHNSON ANNOUNCES AMGEN ARBITRATION DISPUTE
 NEW BRUNSWICK, N.J., Sept. 9 /PRNewswire/ -- A Chicago arbitration


judge has issued a ruling in a contract dispute between Ortho Pharmaceutical Corporation, a subsidiary of Johnson & Johnson, (NYSE: JNJ), and Amgen, Inc., (NASDAQ: AMGN), with the net result that Amgen will pay Johnson & Johnson a sum estimated at, with interest, in excess of $85 million.
 The Honorable Frank J. McGarr had in 1990 found that Amgen failed to comply with its contractual obligations to develop and market erythropoietin, the anti-anemia drug, and in 1991 awarded Johnson & Johnson $164 million in damage to compensate it for being excluded from the market for 19 months. He also ordered the parties to create a mechanism to compensate each other for sales of EPO in each other's exclusive markets. This order will result in additional payments to Ortho. The amount of these additional payments has not yet been determined by the arbitrator.
 This week he found in Amgen's favor in its counterclaims against Ortho involving a hepatitis B vaccine and Interleukin II. The damage award is not finalized, but is apparently around $90 million. The award was based on the finding that Ortho failed to develop these two drugs in accordance with the contract between the parties.
 The 1985 agreement between Ortho and Amgen granted Ortho the right to market erythropoietin for all therapeutic uses other than kidney dialysis patients in the United States, a market that was reserved to Amgen. After litigation and arbitration, Ortho in 1991 gained U.S. Food & Drug Administration approval to market erythropoietin in the United States under the brand name PROCRIT. It is currently approved for pre- dialysis patients and for patients who are HIV-positive. In addition, Ortho Biotech is developing the drug for additional treatments of anemia.
 Now that the arbitrator's decision has been rendered, it should clear the way for Amgen's payment to Johnson & Johnson of the difference in the two damage awards.
 -0- 9/9/92
 /CONTACT: F. Robert Kniffin of Johnson & Johnson, 908-524-3535, or home, 609-799-0369/
 (JNJ AMGN) CO: Johnson & Johnson; Ortho Pharmaceutical Corp.; Amgen, Inc. ST: New Jersey, California IN: MTC SU:


PS-LD -- NY083 -- 7707 09/09/92 17:16 EDT
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Date:Sep 9, 1992
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