Clinton Plan Would Cut Epogen Payments

Medicare payments for Amgen Inc.’s Epogen and other drugs would be reduced under a $2-billion proposal introduced by President Clinton. The administration last month signaled Clinton’s intention to try to get Congress to cut payments for the anti-anemia drug. Epogen accounted for about half of Amgen’s 1997 revenue, much of that from the government Medicare health insurance program. The Epogen cuts could hurt the profits of kidney dialysis providers, which buy the drug from Thousand Oaks-based Amgen and are then reimbursed at a higher rate by Medicare. Still, shares in Amgen and kidney dialysis providers rose, a sign that investors were expecting the Clinton announcement. Amgen shares rose $1.56 to close at $80.31 on Nasdaq. Torrance-based Total Renal Care Holdings Inc. ‘s shares rose 75 cents to close at $26.81 on the New York Stock Exchange, and Nashville-based Renal Care Group Inc. shares rose 13 cents to close at $29.13 on Nasdaq.