| Amgen | One Amgen Center Dr., Thousand Oaks, CA 91320-1799 |
| www.amgen.com | (805) 447-1000 Fax: (805) 447-1010 |
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Amgen through the years
Founded as Applied Molecular Genetics in 1980, Amgen was established by a team of scientists and venture capitalists who saw room to grow in biotech. After three years of struggling, the company hit it big in 1983 when one of its scientists, Fu-Kuen Li, cloned a protein, known as EPO, that stimulates red blood cell production. Following the discovery, the company found itself in a bitter patent dispute with rival the Genetics Institute. Finally, Amgen prevailed when the Supreme Court awarded it the exclusive rights to produce EPO, which it gladly did. The product, marketed as Epogen, is used for the treatment of anemia associated with kidney failure.
Shortly after the breakthrough cloning development, Amgen formed a 50-50 joint venture with the Kirin Brewery Company of Japan, which has a growing pharmaceutical unit. Kirin helps market the drug overseas. Amgen's second breakthrough was Neupogen, which the company began marketing in 1991 for use with chemotherapy treatments. Neupogen stimulates white blood cell production; it is used to help ward off infections that result from chemotherapy. In 1994, the company received the National Medal of Technology, the highest Presidential tribute for achievement in the commercial application of technology (which the company somewhat deliriously calls "the equivalent of a Nobel Prize.")
The world's largest independent biotech firm
With $3.3 billion in sales in 1999 and upwards of 6,400 employees Amgen is the largest independent biotechnology firm in the world. In 1998, many industry observers speculated that the company was ripe for acquisition, notably by chemical giant Du Pont, but Amgen Chairman and CEO Gordon Binder shrugged off such thoughts. In comments to Bio World, Binder firmly stated: "We can stay independent forever. We have plenty of money ($1 billion in cash), with critical mass in research, development, manufacturing - whatever you can name. There's nothing anybody would have to offer us."
The Epogen battleground
The company derives 90 percent of its sales from two products: white blood cell stimulating Neupogen and anti-anemia star Epoetin Alpha, marketed by Amgen as Epogen. To protect its precious Epogen, Amgen has often found itself in court, starting with a patent battle with the Genetics Institute that went as far as the United States Supreme Court. In 1997, the company filed suit against another rival, Transkaryiotic Therapies Inc. (TKT), arguing that TKT's novel way of producing EPO infringes Amgen's hard-won patent. While Amgen's claims survived a motion to dismiss, the company suffered a setback when a federal judge ruled that TKT and partner Hoechst Marion Roussel were entitled under federal law to continue testing their EPO product. Furthermore, in 1999 TKT and Hoechst Marion Roussel filed a motion to reopen the case against Amgen, which could cause even more problems for the company. Other Epogen-related woes include Clinton administration effots to cut Medicare funding for the drug.
Victory over Johnson & Johnson
Headaches from TKT and the prez aside, Amgen scored a major victory in the EPO wars when an arbitration panel declared in late December 1998 that licensing agreements with Johnson & Johnson regarding Epoetin Alpha (Epogen) did not apply to NESP, the drug's likely successor. The story begins in 1985, when Amgen licensed to J&J the exclusive right to promote and sell Epoetin Alpha under the name Procrit for non-dialysis use (chemotherapy) in the U.S., and all indications worldwide excluding Japan and China. Like Epogen, Procrit became a serious cash cow for J&J, producing estimated annual sales of around $1.4 billion. Naturally, when Amgen began work on a newer, longer-lasting version of Epoetin Alpha, J&J took considerable interest, and insisted that the 1985 licensing agreements would continue to apply to the new drug's marketing and distribution. Amgen begged to differ, and the matter quickly wound up in arbtitration. The industry was surprised, and Amgen thrilled, when arbitrators rejected J&J's claims.
Pipeline anxiety
With the positive J&J outcome, and 13 products in some form of development, Amgen would appear to have a nicely gushing pipeline, but some industry analysts aren't so sure. In particular, analysts are worried about Amgen's disappointments recently with its drugs in development, such as less than stellar trial results from leptin, a naturally-occurring human hormone with the potential to reduce obesity. Further, in September 1998, the company canceled efforts to produce another blood platelet stimulator.
However, not all is dark on the horizon. One bright spot is the company's development of neuroimmunophilin ligands (Nls) compound, aimed at treating the effects of Parkinson's disease and other disorders. Another drug in human trials is Osteoprotogerin (OPG), a protein that inhibits deterioration of bone tissue and combats osteoporosis and cancer-related bone metastasis. Medicare was giving the company problems because of the expense of its Epogen drug. but decided in 1999 to cut the company some slack, resulting in increased profits. Whatever the status of Amgen's pipeline, the company spends plenty on research and development. In the first three months of 1998 alone, for example, the company plunked down no less than $152.5 million for R&D.
Adding more to its product line
Amgen's large investment into research and development just may be beginning to pay off. The company announced in 1999 two additions to its current line of drug products. One drug, known as NESP, is seen as the successor to Epogen, as it is more powerful in fewer doses. The second drug, Abarelix, is designed to fight prostate cancer by lowering levels of testosterone in patients faster than drugs of competitors. Both drugs seem promising for Amgen and are expected to add approximately $1 billion in annual sales for the company if successful. Amgen even entered into an agreement with Praecis Pharmaceuticals Incorporated to develop Abarelix while Amgen distributes it in the U.S., Canada, Australia, and Asia. The company also signed a deal with Abgenix, Inc. in 1999 to generate human monoclonal antibodies aimed at treating various diseases using Abgenix's XenoMouse technology. Furthermore, the company announced in 1999 that it sold its 435,00 square-foot campus in Boulder, Colorado for $32 million in quite possibly the largest real estate deal in Boulder's history. Amgen now plans to open an Epogen manufacturing plant outside of Denver, capable of producing three times the amount of Epogen compared to a similar plant in California. Amgen has entered into the battle against Alzheimer's disease, when it isolated an enzyme suspected in being a major cause of the onset of the disease.
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In the past several years, Amgen had increased its staff by 20 to 40 percent each year, but insiders tell Vault.com that the company is now in a hiring slowdown. "The possibilities of coming in for a research position are next to nil right now," reports one insider at the beginning of 1998. Applicants can send their resume by either e-mail or regular mail or use the online resume builder at the company's web site. Human Resources utilizes an electronic resume database system that keeps resumes on file for six months; one marketing employee, however gripes that "Amgen's HR is useless." That employee cautions that one should be ready to "be persistent," if seriously interested in Amgen.
Back doors have been used to get into Amgen in the past - insiders suggest Aerotek and Lab Support, both based in California, but that method, apparently isn't working at Amgen these days, either: "Amgen has cut out nearly all temporary jobs, and there are no part-time jobs." "It is not easy to get in to Amgen straight out of [undergraduate] school," says one. "It is best if you have had an internship or another job first." Another way to get into Amgen is through the company's internship programs: The company offers paid summer internships for both undergraduate college students and MBAs. Employees who have been through this process report one screening interview at campuses at which Amgen recruits followed by a second round in California; offers are made shortly after the second round, sometimes the next day.
"Personal fit is important, as well as an understanding of pharmaceutical products and markets," says one employee about what the company looks for in its applicants. Some departments, insiders report, try to assess prospective employees' behavioral profiles during interviews. Marketing MBA employees report having case questions given to them. Once hired by Amgen, employees report a somewhat nebulous career path. Says one MBA employee: "Career path is not well defined. Many people move up or to other departments."
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Solid pay, handsome benefits, pricey locale
Amgen is sharing the benefits of its financial growth with its employees. "Pay is very good," reports one employee. "We are very well compensated in terms of salary and benefits," says another. One employee, however, says that while "the pay is very good, the cost of living is fairly high as well." Employees, concur, however, that Amgen offers a "bountiful benefits package." Perks include a gym, cafeterias and a brand-new 45,000 square-foot day care facility (the largest in the country) in Thousand Oaks designed to feel like a big house. There's also "significant yearly bonuses," insurance plans with "extremely affordable monthly premiums, a stock purchase plan, a free 24-hour medical questions hotline, and even an adoption reimbursement plan." And if Amgen itself didn't provide enough, there's sunny California itself. "Thousand Oaks in general is probably one of the nicest suburbs in Los Angeles," according to one employee.
Relaxed culture
Amgen's culture is described as "relaxed." Dress at Amgen for researchers is casual. In other areas, however, unlike at some other biotechs, employees are expected to dress up. "The dress code is casual in the labs," reports one employee. "The code of the offices - sales, marketing, human resources, etc. - is much more formal." "Most of the upper-level managers wear standard business attire," reports one insider, "although the men don?t always wear ties." Contrast those areas with the labs: "I usually wear jeans. Tennis shoes and shorts are accepted," says one employee in research.
Minding the matrix
Also, there is a "matrix" style organizational structure that seeks to break down walls between departments. One employee reports enjoying "having everyone say 'hello' to you in a friendly manner when you see them in the halls, even if we don't know each other." "Amgen sponsors a lot of company parties, so that's pretty fun," reports one insider. These events include company-sponsored trips to Disneyland and nearby beaches, employees say. The closeness of employees doesn't mean that colleagues are always looking over each other's shoulders, though. Amgen employees feel "empowered" to "take the ball and run with it." However, cautions one marketing employee: "If you need a lot of supervision and structure, you might want to look somewhere else."
Amgen: biotech's plum
Not all is perfect at Amgen, though, in large part because of recent fiscal troubles: "We are currently experiencing some growing pains, in the sense that our earnings are not as strong as they once were, so that means less jobs this year, less parties, etc." Another says that while corporate culture is relaxed in general, it is "getting tougher every day." "Work hours are long," complains one employee. "There is no set time, other than you work 40 hours per week. However, it is often 50 hours a week." Overall, however, employees are glad to hold "one of the plum jobs in the industry." A "fast-paced and motivated staff keeps the momentum going." Sums up one employee: "Amgen is the best place I've ever worked, no doubt."
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Epogen;Infergen;Neupogen
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Biogen;Cephalon;Immunex;Transkaryotic Therapies
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