REFUELING A BIOTECH GROWTH ENGINE

Abstract

SWEPT UP IN A CONTROVERSY that could erode sales of its top-selling product, Amgen is more reliant than ever on commercializing a steady flow of new drugs. That puts a spotlight on the firm's R&D engine, run by Joseph Miletich, senior vice president of research and development. Stock analysts have been scrutinizing Amgen after recent reports that high doses of its anemia treatment Aranesp increase the risk of serious, sometimes deadly side effects in cancer patients. A Food & Drug Administration advisory committee recommended limiting the use of Aranesp and other erythropoiesis-stimulating agents (ESAs) to treat cancer, and the agency will soon set guidelines for how the drugs should be administered. The financial pressure on Amgen mounted when the Centers for Medicare & Medicaid Services decided, in the absence of final word from FDA, to limit its coverage of ESAs. Analysts believe private insurers could follow suit, a move that would severely cut Aranesp's market ...