Can It Push Key Products?
A successful union — one that delivers on Amgen’s financial targets — will depend largely on whether two new drugs, one from each company, can meet Amgen’s high expectations. One task will be to prove that Enbrel, an Immunex drug that treats rheumatoid arthritis and will rack up sales of about $775 million in 2001, can quickly ramp up to $1 billion a year in revenue. Amgen management predicts that Enbrel will hit $3 billion in 2005. But Deutsche Banc’s Harp thinks $2.4 billion is more realistic. “To get to $3 billion assumes a compounded annual growth rate on Enbrel of 40% year-over-year,” he says. “I thought I was being pretty aggressive at 30% annual growth.” Plenty of pieces have to fall into place for Enbrel to reach its potential. So far, sales have been impeded by manufacturing limitations, though those will ease when a new plant opens sometime between the fall of 2002 and early 2003. The Food & Drug Administration is now reviewing Immunex’ request to use Enbrel for treating ps
