Amgen Strikes Deal to Research Pill Alternative to Epogen Drug

Amgen Inc. has quietly struck a research deal with a small, South San Francisco-based biotechnology firm that is trying to develop a pill to mimic the effects of Amgen’s blockbuster Epogen drug.

Epogen is given intravenously to combat anemia in kidney-dialysis patients.

The three-year agreement with Arris Pharmaceutical Corp. gives Thousand Oaks-based Amgen, one of the nation’s largest biotechnology firms, the right to manufacture and market any jointly developed drug.

Daniel Vapnek, Amgen’s senior vice president for research, declined to say whether any specific product is behind Amgen’s agreement with Arris. But he confirmed that the area of Arris’ research to be funded by Amgen includes anything related to making erythropoetin, a human protein that triggers production of red blood cells. Amgen’s Epogen is a gene-spliced copy of the protein in liquid form.

“One of the things we’re obviously interested in is the next generation” of biotech drugs that are in oral form, Vapnek said.

Although scientists say an oral version of erythropoetin is at least a few years away, if it came to the market it would probably be more convenient to use than Epogen and could put a big dent in Amgen’s sales.

Jim McCamant, editor of the Medical Technology Stock Letter in Berkeley, said Amgen’s agreement with Arris is a step toward buying up a potential rival. “If you’re going to have somebody obsolete your drug, you’d like to have it yourself,” he said.

Epogen was approved for U.S. sale in 1989 and generated revenue of $506 million last year for Amgen. But, like the other 15 or so biotechnology drugs now for sale in the country, Epogen is in liquid form and must be administered intravenously.

Joan Kureczka, a spokeswoman at Arris, said Amgen sought out Arris and then pursued the agreement. She also declined to comment on any specific project.

Amgen also agreed to pay an up-front fee but did not buy an equity stake in Arris, a privately held firm that analysts consider promising because of its talented staff. Financial terms of the collaboration were not released.