Posted tagged ‘Amgen’

Despite New Onyx Drug, Amgen Performs Below Predictions

August 21, 2014

Amgen logo pic Last fall, Amgen Inc. made waves in the biotech industry by purchasing Onyx Pharmaceuticals Inc. for $10.4 billion. The deal came after Onyx turned down the company’s initial $10 billion offer in June 2013. In its first quarter since purchasing the biotech start-up, Amgen reported lower-than-forecasted earnings. Although sales increased from the same period in 2013, the pharmaceutical giant’s revenues fell $230 million short of estimates. The company attributes the gap primarily to a drop in sales of Enbrel, an anti-inflammatory drug. Meanwhile, analysis shows that Onyx’s multiple myeloma drug, Kyprolis, generated $68 million, and drugs such as Xgeva and Prolia helped drive sales growth by approximately 5 percent.

Despite the fact that Kyprolis contributed $68 million to the company’s bottom line, the purchase of Onyx also affected Amgen’s first-quarter earnings. According to officials, research and development costs increased by more than 15 percent during the quarter as Amgen integrated Onyx’s existing programs. Although Amgen may see some slowed growth as a result of the growing biosimilar market, analysts predict that Kyprolis could hit peak sales of $2.4 billion in five years.

Advertisements

Amgen Purchases Rights to Filgrastim and Pegfilgrastim

November 7, 2013

Leading biologics manufacturer Amgen, Inc., recently announced its acquisition of the rights to sell and distribute the drugs filgrastim and pegfilgrastim in close to 100 markets. Previously owned by F. Hoffmann-La Roche (Roche) under license from Kirin-Amgen, Inc., a partnership between Amgen and Japanese company Kirin Holdings Co. Limited, the franchise rights to the African, American, Asian, Eastern European, Latin American, and Middle Eastern markets earned $200 million in sales for Roche in 2012 alone. Sold under the names Neupogen and Neulasta in the United States and Europe, filgrastim and pegfilgrastim boost white blood cell counts of patients undergoing chemotherapy, thus helping them resist infections.

The deal will begin to take effect January 1, 2014, in a gradual transition designed to ensure that doctors and patients continue to have access to these potentially life-saving drugs. Consequently, Roche will distribute the drugs in countries where Amgen does not have a market presence until Amgen is able to establish a distribution pipeline. The resulting growth in previously untapped markets will enable Amgen to create reliable distribution networks in these areas and reach more patients worldwide.

Indicative of Amgen’s faith in its ability to drive sales effectively in the formerly Roche-controlled areas, the acquisition closely precedes the expiration of Amgen’s patent on filgrastim, which will be facing new competition from tbo-filgrastim, an unofficial filgrastim biosimilar manufactured by Teva Pharmaceutical Industries, Ltd. Although biotech insiders predict that Amgen may lose up to 40 percent of franchise sales from both filgrastim and pegfilgrastim by 2018, the biotech giant continues to show sales growth, as reported in its third-quarter results for 2013. Amgen experienced total revenue growth of 10 percent over the third quarter as well as an 11 percent increase in product sales, which were generated in part by revenue from its brand-name pegfilgrastim (Neulasta) and filgrastim (Neupogen) drugs.