NEW DRUGS COULD BOOST AMGEN'S EARNING 20%.

Byline: Evan Pondel Staff Writer

THOUSAND OAKS - Riding the success of its two recently approved drugs, biotechnology behemoth Amgen Inc. on Tuesday projected earnings per share growth in the low 20 percent range for 2002, double that of the current year.

``I believe we are well positioned ... but it will take time,'' said Kevin Sharer, Amgen's chief executive officer, in a conference call after Tuesday's market close.

Shares of the Thousand Oaks-based company rose $2.89, or 4.99 percent, to $60.80 in after-hours trading on the Nasdaq.

The company expects total product sales to grow in the high teens over the prior year, with anemia drug Aranesp and rheumatoid arthritis drug Kineret to gain significant momentum in 2002.

Focusing on anemia drugs Aranesp and Epogen, the company projects sales growth in the low 20 percent range. Amgen didn't provide sales expectations for Kineret, which was approved by the Food and Drug Administration last week.

Sharer said he expects compound annual growth rates for sales and earnings-per-share in the low 20 percent range through 2005 period.

Despite the company's optimism, some analysts weren't thoroughly complacent with the forecast.

``The top line was slightly weaker than what we expected,'' said Craig West, senior analyst with A.G. Edwards & Sons Inc. in St. Louis. ``But they are going to save some money by spending less on research and development.''

West said he expects Aranesp sales to reach about $400 million in 2002.

George Morrow, Amgen's executive vice president, worldwide sales and marketing, said sales of Aranesp are likely to improve once the hurdles of prescribing the drug decrease due to its recent FDA approval.

``Physicians need to believe Aranesp is a better product,'' he said. ``The longer dosing interval of Aranesp is truly compelling.''

As reimbursements on newer drugs take a little longer to receive, medical professionals may be less likely to prescribe Aranesp to patients.

``Physicians are a little hesitant to convert from Procrit to Aranesp ... because of claims,'' Morrow said.

While the FDA approved Aranesp for dialysis and predialysis purposes only, the drug is far more potent than the existing treatment, Epoetin alfa, found under the names Epogen and Procrit. Epogen is manufactured by Amgen and Procrit is made by Johnson & Johnson.

Of the $4 billion global market these drugs encompass, Johnson & Johnson controls at least half. However, if the FDA approves Aranesp for cancer treatment, Amgen could have the potential to absorb Johnson & Johnson's share.

The approval of Aranesp was an important move for Amgen, potentially setting the tone for the company's entrance into a multibillion-dollar market.

West said he thinks Aranesp will be a major producer for the company, especially once it's approved for oncological uses. Amgen has filed an application with the FDA for approval of Aranesp in an oncological setting.

As the company improves the red blood cell count of those with anemia, Amgen's financial health remains fairly stable, West said.

In the third quarter, Amgen's net income increased 5 percent to $330 million, excluding a year-ago gain, or 30 cents a share, compared with $359 million, or 33 cents a share a year earlier.

The company's total third-quarter product sales rose 3.4 percent, to $880 million from $851 million in the third quarter of 2000.